Freelance hourly rate calculator

Find the lowest hourly rate you can quote and still hit your take-home goal after overhead, taxes, and the hours you can't bill. Free, no sign-up, runs in your browser.

Take-home pay you want per month After taxes, what you want to pay yourself. Working hours per week All work: client work, admin, sales, learning. Working weeks per year 52 minus vacation, holidays and sick days. Billable share of hours (%) 50 to 70% is common for solo freelancers. Business overhead per year ($) Software, insurance, equipment, fees. Tax buffer (%) Share you plan to set aside for taxes. Many start at 25 to 35%. Safety margin (%) Cushion for slow months and late payers.

Minimum hourly rate

Day rate (8 hours)

Profit needed before tax

Revenue needed per year

Billable hours per year

Same goal at other billable shares

Billable share	Hours / year	Minimum hourly

How the math works

Your take-home goal times 12 is divided by one minus your tax buffer, which gives the profit you need before tax. Overhead is added, and the total is raised by your safety margin to get the revenue you need for the year. That revenue is divided by the hours you can actually bill (hours per week times weeks times your billable share). The result is the lowest hourly rate that still pays you.

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Questions

What should my billable share be?

Most solo freelancers bill 50 to 70% of their working hours. The rest goes to admin, sales, invoicing and learning. If you're not sure, start at 60 to 65%.

Why add a tax buffer?

As a freelancer no one withholds taxes from your pay, so your rate has to cover them. The buffer is the share of profit you plan to set aside. Many people start around 25 to 35%, but the right number depends on your situation, so check with a tax professional.

Is this my real rate?

It's your floor, the lowest rate that still pays you. Quote at or above it. Market rates for your skill and niche may be much higher.

Do you store what I type?

No. The math runs in your browser and nothing is sent anywhere.

This calculator is a planning tool. It isn't tax, legal, or accounting advice. Check figures and due dates on IRS.gov or with a qualified tax professional.