Freelance hourly rate calculator.

Work out the right rate based on your target income, business expenses, taxes, and profit margin — the rate that actually accounts for the true cost of going freelance.

Why freelance rates are higher than full-time salaries.

Freelancers should charge 2–3× their employee hourly equivalent. The multiplier covers taxes, health insurance, no paid time off, equipment costs, and gaps between projects.

  1. 01
    Account for self-employment taxes (15.3% in the US).
  2. 02
    Include health insurance, equipment, and software costs.
  3. 03
    Factor in 30–50% non-billable time — admin, sales, marketing.
  4. 04
    Compare to market rates by role and experience level.

Calculate your rate.

How much you want to take home (before taxes).

Software, equipment, insurance, office, marketing, etc.

What to include?
  • Software subscriptions & development tools
  • Design software & assets
  • Professional liability insurance
  • Health insurance (self-employed)
  • Self-employment taxes (FICA ~15.3%)
  • Home office expenses
  • Professional development & courses
  • Accounting & tax preparation
  • Marketing & portfolio website
  • Internet & phone

Combined federal, state, and self-employment taxes (default 30%).

Realistic for freelancers: 25–35 hours. Not 40 — account for admin, sales, marketing.

52 weeks minus vacation and holidays (48 = 4 weeks off).

Recommended 20–30% for growth, equipment, and emergency fund.

How to calculate your freelance rate.

The formula.

Calculating your rate means accounting for everything you give up as a freelancer — benefits, security, paid time off, gaps between projects.

TaxesIncome × Tax rate
Annual costsIncome + Expenses + Taxes
Target revenueAnnual costs ÷ (1 − Margin)
Billable hoursHours/wk × Weeks/yr
Hourly rateTarget ÷ Billable hours

Why freelance rates are 2–3× full-time salaries.

If you make $75,000 as an employee, your freelance rate should be around $75–$100/hr — not $36/hr (which is $75k ÷ 2,080 hours). Here’s why:

  1. 01
    Freelance rates should be 2-3x employee hourly equivalent
  2. 02
    Employees get benefits: health insurance, 401k, paid vacation, sick time
  3. 03
    Freelancers handle their own: taxes, insurance, retirement, equipment
  4. 04
    Freelancers have unpaid time: sales, marketing, admin, training
  5. 05
    Freelancers bear risk: gaps between projects, slow periods, late payments

Common pricing mistakes.

  1. 01
    Basing rates on full-time salary without accounting for taxes and benefits
  2. 02
    Assuming 40 billable hours per week (30 is more realistic)
  3. 03
    Not factoring in project acquisition time, admin work, and invoicing
  4. 04
    Forgetting self-employment taxes (15.3% in the US)
  5. 05
    Underestimating health insurance costs for self-employed
  6. 06
    Not building in profit margin for slow periods and business growth
  7. 07
    Comparing to full-time salaries without considering lack of benefits
  8. 08
    Not setting project minimums (leads to unprofitable small projects)
  9. 09
    Charging the same rate regardless of project size or complexity
  10. 10
    Not raising rates as you gain experience and expertise

Business expenses to include.

  • Software & Tools$500–$2,000 / year
  • Health Insurance$6,000–$18,000 / year
  • Professional Insurance$500–$2,000 / year
  • Self-Employment Tax (15.3%)15.3% of net income
  • Office/Coworking$500–$3,000 / year
  • Professional Development$1,000–$5,000 / year
  • Accounting & Legal$500–$3,000 / year
  • Marketing & Portfolio$500–$3,000 / year

Market rate benchmarks by role.

Developer rates

  • Junior (0–2 yrs): $30–60/hr
  • Mid (3–5 yrs): $60–120/hr
  • Senior (5–10 yrs): $120–200/hr
  • Expert (10+ yrs): $200–500/hr

Designer rates

  • Junior (0–2 yrs): $25–50/hr
  • Mid (3–5 yrs): $50–100/hr
  • Senior (5–10 yrs): $100–175/hr
  • Expert (10+ yrs): $175–400/hr

Writer rates

  • Junior (0–2 yrs): $20–40/hr
  • Mid (3–5 yrs): $40–80/hr
  • Senior (5–10 yrs): $80–150/hr
  • Expert (10+ yrs): $150–350/hr

Marketer rates

  • Junior (0–2 yrs): $25–50/hr
  • Mid (3–5 yrs): $50–100/hr
  • Senior (5–10 yrs): $100–175/hr
  • Expert (10+ yrs): $175–400/hr

Set minimum project sizes to avoid unprofitable small jobs. Small projects carry the same overhead (proposals, contracts, invoicing) but lower margins.

Rate calculation tips.

  1. 01
    Your hourly rate should be 2-3x what you would earn as an employee
  2. 02
    Account for 30-50% non-billable time (sales, admin, professional development)
  3. 03
    Include all taxes: income tax, self-employment tax, and state taxes
  4. 04
    Health insurance alone can cost $500-1,500/month for self-employed
  5. 05
    Build in 20-30% profit margin for business growth and emergencies
  6. 06
    Set project minimums to avoid unprofitable small jobs
  7. 07
    Consider offering package pricing for common project types
  8. 08
    Review and raise rates annually, minimum 5-10%

Pricing strategies: hourly vs project vs value-based.

Hourly Rate

Best for

  • Ongoing retainer work
  • Maintenance and support
  • Projects with unclear scope
  • Short-term engagements

Pros

  • Simple to calculate and track
  • Fair for undefined scope
  • Easy for clients to understand
  • Protects against scope creep

Cons

  • Caps your earning potential
  • Penalizes efficiency and experience
  • Requires time tracking
  • Can feel like employee mentality

Project-Based Pricing

Best for

  • Well-defined deliverables
  • Fixed scope projects
  • Design and creative work
  • Productized services

Pros

  • Rewards efficiency and expertise
  • Higher perceived value
  • Predictable budget for client
  • No time tracking needed

Cons

  • Requires accurate scope estimation
  • Risk of underestimating time
  • Scope creep is costly
  • Needs clear deliverables

Value-Based Pricing

Best for

  • High-impact strategic work
  • Revenue-generating projects
  • Business transformation
  • Expert-level engagements

Pros

  • Highest earning potential
  • Aligns with client outcomes
  • Positions you as partner
  • Premium positioning

Cons

  • Requires deep client understanding
  • Hard to quantify value
  • Need proven track record
  • Complex to calculate

When to raise your rates.

  1. 01
    You’re fully booked and turning down work.
  2. 02
    You’ve gained significant new skills or certifications.
  3. 03
    You haven’t raised rates in 12+ months (minimum 5–10% annually).
  4. 04
    Your business expenses have increased.
  5. 05
    You can demonstrate proven results and ROI for clients.
  6. 06
    You’re winning every proposal you send (you’re underpriced).

Pro tip: Raise rates for new clients first, then transition existing clients with 60–90 days’ notice and grandfathering options.

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Built by Taro Schenker — freelance web developer and SEO specialist.