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Set profitable freelance rates with our comprehensive calculator. Factor in your desired salary, business expenses, taxes, billable hours, and profit margin to determine your optimal hourly or project rates.
Your target take-home salary
Hours you can bill clients (typically 50-75% of work time)
52 weeks minus vacation/holidays (typical: 48-50 weeks)
Software, equipment, insurance, marketing, etc.
For reinvestment and business growth
Income tax + self-employment tax (typical: 25-35%)
Hourly Rate:
$107
Daily Rate:
$859
Weekly Rate:
$4,293
Monthly Rate:
$17,172
Tip: Your billable rate ($107) is higher than your effective rate ($52) because it accounts for taxes, expenses, and profit margin. This is normal for freelancing!
Setting the right freelance rate is crucial for sustainable self-employment. Charge too little and you'll work yourself to exhaustion while struggling financially. Charge too much and you might struggle to find clients. Our calculator helps you determine a rate that covers all business expenses, provides for personal needs, and compensates you fairly for expertise while remaining market-competitive.
Unlike salaried employees, freelancers must account for many hidden costs: health insurance, retirement savings, business expenses (software, equipment, office space), taxes (self-employment tax adds 15.3%), non-billable time (marketing, admin, professional development), and inconsistent income. A common rule of thumb: multiply your desired salary by 2-2.5 to determine your gross revenue target, then divide by billable hours.
Most freelancers overestimate their billable hours. Working 40 hours per week doesn't mean 40 billable hours. Realistically, expect 50-60% of your time to be billable when accounting for client acquisition, proposals, invoicing, professional development, and administrative tasks. Our calculator helps you set realistic expectations for billable hours and plan accordingly.
Consider value-based pricing for experienced freelancers—charge based on the value you deliver rather than hours worked. A website that generates $100k in annual revenue is worth more than 20 hours at $100/hour. Start with hourly rates when building your reputation, then transition to project-based or value-based pricing as expertise grows. Remember to raise rates annually (3-5%) to keep pace with inflation and growing experience.
Explain that freelance rates aren't equivalent to employee salaries—they cover health insurance, retirement, taxes, business expenses, and feast-or-famine income. Emphasize value delivered rather than hours worked. Show how your expertise saves them money or makes them money.
Brief discount periods to build portfolio are acceptable, but don't undervalue your work long-term. Instead, offer payment plans, smaller project scopes, or value-adds rather than rate reductions. Clients who choose you only on price often become problem clients.
Annually at minimum to keep pace with inflation (3-5%). Also raise rates when you gain expertise, are fully booked, or complete professional development. Grandfather existing clients for 3-6 months, then implement increases. Confident rate increases filter for quality clients.