Freelance Rate Calculator
Calculate the freelance hourly, daily, and project rate you actually need after taxes, business expenses, vacation time, and realistic billable hours.
How to Price Your Freelance Rate Without Undercharging
Most freelancers do not undercharge because they lack skill — they undercharge because they forget taxes, admin time, unpaid revisions, and slow months. This calculator works backward from your take-home target so you can price with margin instead of guessing.
What this calculator includes
- Income goal: the personal take-home pay you want to keep
- Business expenses: software, insurance, equipment, subcontractors, and overhead
- Tax drag: federal tax, state tax, and self-employment tax
- Billable reality: vacation and fewer than 40 billable hours per week
If you want to pressure-test the tax side separately, run the same income through our self-employment tax calculator. If you are building a full freelance finance stack, pair this with the expense tracker and invoice generator.
Quick pricing sanity checks
- If your rate only works when you bill 40 hours every week, it is probably too low.
- If you are not setting aside tax money from every invoice, your rate is probably too low.
- If your rate cannot absorb revisions, marketing time, and client acquisition, your rate is definitely too low.
💰 Income Breakdown
🏛️ Tax Breakdown
Set aside $0 per quarter for taxes
File Easily with TurboTax Self-Employed →Free Freelance Financial Toolkit
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Frequently Asked Questions
How do I calculate my freelance hourly rate?
Add your desired annual income, business expenses, and estimated taxes. Divide by your total billable hours (working weeks × hours per week). This calculator does all of that automatically, including real federal and state tax brackets.
Should I charge hourly or project-based rates?
Both have pros and cons. Hourly rates are transparent but cap your earnings. Project rates reward efficiency and are preferred by many clients. Start with hourly to understand your time, then transition to project pricing as you gain experience.
How much should I set aside for taxes as a freelancer?
A safe rule of thumb is 25–30% of your gross income. Freelancers pay self-employment tax (15.3%) on top of federal and state income taxes. This calculator gives you a precise quarterly amount based on your actual situation.
What is self-employment tax?
Self-employment tax covers Social Security (12.4%) and Medicare (2.9%) — totaling 15.3%. As a W-2 employee, your employer pays half. As a freelancer, you pay both halves. The IRS lets you deduct half of this tax from your taxable income.