Freelance Rate Calculator

Compute the hourly rate you need to charge as a freelancer to hit your desired income. Accounts for self-employment taxes, health insurance, business expenses, and profit margin.

Financial Disclaimer

This calculator is for educational purposes only and does not constitute financial advice. Results are estimates based on the inputs provided. Consult a qualified financial advisor before making investment or financial planning decisions.

Inputs

Desired Annual Income

Billable Hours/Week

Weeks Worked/Year

Monthly Health Insurance

Self-Employment Tax Rate

Monthly Business Expenses

Annual Retirement Contribution

Profit Margin

Tab to move between fields

Results

Required Hourly Rate

$84.92

≈ 6 movie tickets

Daily Rate (8 hrs)$679.33

Monthly Revenue Needed$10,189.91

Annual Revenue Needed$122,278.89

Total Annual Costs$15,600.00

Effective Tax Rate21.82%

How to Use This Calculator

Enter your desired annual take-home income after taxes and expenses.
Set the number of billable hours per week you realistically expect to charge clients (typically 60–70% of your working hours).
Input your monthly health insurance premium, monthly business expenses, and annual retirement contribution.
Adjust the self-employment tax rate (default 15.3% covers Social Security + Medicare) and add a profit margin buffer.
Review the Required Hourly Rate and Daily Rate outputs to set competitive, profitable pricing.
Use the Revenue Breakdown pie chart to see how each cost category eats into your gross revenue.

How the result changes with Billable Hours/Week

Billable Hours/Week	Required Hourly Rate
11	$231.59
24	$106.14
41	$62.13
55	$46.32

What each input means

Desired Annual Income: Net take-home income you want after taxes and expenses.
Billable Hours/Week: Hours per week you can actually bill clients (typically 60-70% of work time).
Weeks Worked/Year: Working weeks per year after vacation and sick time.
Monthly Health Insurance: Monthly health insurance premium you pay out of pocket.
Self-Employment Tax Rate: Self-employment tax rate (15.3% covers Social Security + Medicare).
Monthly Business Expenses: Recurring business costs like software, coworking, tools.
Annual Retirement Contribution: Annual amount to save for retirement (SEP-IRA, Solo 401k, etc.).
Profit Margin: Buffer for irregular income, growth, and unexpected costs.

How this is calculated

Worked example, using the default values

Identify Input Parameters
4 parameters
Desired Annual Income = 80000, Billable Hours/Week = 30, Weeks Worked/Year = 48, Monthly Health Insurance = 500 = 8 input(s) provided
Calculate Required Hourly Rate
Required Hourly Rate
84.92 = $84.92
Calculate Daily Rate
Daily Rate
679.33 = $679.33
Calculate Monthly Revenue Needed
Monthly Revenue Needed
10189.91 = $10,189.91

Engine last updated July 28, 2026. Checked against 1 independently-derived test — how we verify calculators.

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