Freelance Hourly Rate Calculator (with Tax and Time Off)
Work out the minimum hourly rate you need from your take-home pay, tax, expenses and time off. Free, private, no sign-up.
Why your hourly rate needs to be higher than a salary
If you're used to a salary, it's tempting to divide your old paycheck by the hours you worked and call it a rate. That number is too low: a salary already has taxes withheld, and your employer separately covers costs a freelancer pays out of pocket — software, insurance, slow periods between clients, unpaid admin time. This calculator builds those back in, so the number you get is closer to what it actually takes to keep the lights on.
How to use this
- Enter the yearly take-home pay you want after tax.
- Add your yearly business expenses.
- Set your tax rate and weeks off — your minimum hourly rate updates instantly.
- Day rate (8 billable hours)
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- Revenue needed per month
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- Revenue needed per year
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- Billable hours per year
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- Estimated tax per year
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How this rate is worked out
Your take-home pay is grossed up for tax, business expenses are added, and the total is divided by the hours you can bill: (take-home ÷ (1 − tax rate) + expenses) ÷ billable hours.
How many hours can I bill?
Fewer than you work. Admin, emailing, pitching and gaps between projects go unpaid, so many freelancers plan around 20 to 30 billable hours a week rather than 40. Lower the hours above and watch the rate climb.
Is this the rate I should quote?
Treat it as a floor: the rate below which you lose money. Quote above it to leave room for discounts, late payers and slow months.
My rate looks higher than what other freelancers in my field charge. What should I do?
That gap usually means one of two things: the going rate may be higher than you think, or one of your inputs needs adjusting — check your billable-hours estimate first, since that's the number people most often set too high. This calculator shows your floor, not a market average; you're free to charge above it, but charging below it means the math stops working.
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