Freelance Rate Calculator
Most freelancers price by copying a competitor or guessing. This works backwards from the life you want: enter your target take-home income and it returns the rate that funds it.
How the calculation works
The calculator reverses the usual logic. Instead of picking a rate and hoping it adds up, it starts from what you want to keep and grosses it up for everything that eats into a freelance rate:
- Gross up for tax. Your take-home target is divided by one minus your tax rate to find the pre-tax profit you need.
- Add expenses. Software, hardware, insurance and fees are added on top, because clients ultimately fund them.
- Add a profit buffer. A margin for slow months and reinvestment keeps the business healthy.
- Divide by real billable hours. Only the hours you actually invoice count, which is what makes the honest rate higher than people expect.
Get your number, then make it stick
A rate you can defend is worth nothing if undefined work erodes it or invoices go unpaid. These tools handle the contract-and-getting-paid side so your real rate survives contact with clients.
Bonsai
Proposals, contracts, invoicing and time tracking built for freelancers.
FreshBooks
Invoicing and accounting that makes getting paid (and taxes) painless.
Frequently asked questions
How many billable hours should I assume?
Far fewer than 40 a week. Between admin, sales, breaks and downtime, most full-time freelancers bill 24 to 30 hours a week. Padding this number is the single most common reason people set their rate too low.
What tax rate should I enter?
Use your effective rate on profit, including self-employment or payroll taxes. Many freelancers land somewhere between 25% and 35%, but check your own jurisdiction.
Should I really add a profit buffer?
Yes. A buffer covers slow months, bad-debt risk and reinvestment. Charging only to break even leaves no room for the business to grow or absorb a shock.