Freelance Rate Calculator

Freelance rate calculators exist because the jump from salary to independent work makes most people undercharge. An employee earning $80,000 might assume a $40/hour freelance rate is equivalent, but it is not — not even close. Freelancers pay both sides of payroll taxes, cover their own benefits and insurance, absorb business expenses, and lose income to non-billable hours. This calculator works backward from your desired take-home pay to find the hourly rate that actually sustains your business.

The tool adds up everything a freelance rate must cover: take-home salary, income and self-employment taxes, business expenses, and a profit margin for reinvestment and slow months. It divides that total by billable hours per year, which accounts for weeks off and the reality that not every working hour produces revenue. The salary comparison at the bottom shows why freelance rates are typically 2x to 3x higher than the equivalent employee hourly rate — and why that markup is necessary, not greedy.