Free tool
Freelance rate calculator
Work out the hourly rate you actually need to hit your income goal, after tax, expenses, and the reality that you cannot bill every hour you work. Free, instant, no signup.
What you want to keep, after tax and expenses.
Software, gear, insurance, subscriptions, fees.
A rough effective rate. Check with your accountant.
Be honest: admin, sales, and email are not billable. Most freelancers bill 20 to 30 of a 40 hour week.
52 minus vacation, holidays, and sick days. Try 46 to 48.
You need to charge about
$75 /hour
Day rate (8 hrs)
$598
Week rate
$1,870
A floor, not a ceiling. Charge for the value you create, and treat this as the minimum that keeps you in business.
Why most freelancers underprice
The usual mistake is taking a desired salary and dividing by 2,080 hours, the full-time work year. But freelancing is not full-time billing: a big slice of your week goes to finding clients, admin, invoicing, and email, none of which pays. On top of that, no employer is withholding your tax or covering your software, insurance, and gear. This calculator starts from the money you actually want to keep, grosses it up for tax, adds your expenses, and divides by the hours you can realistically bill, which is the honest way to find a rate that keeps you in business rather than slowly draining you.
Questions
- How do I calculate my freelance hourly rate?
- Start from the take-home pay you want, add your business expenses, and gross the total up for tax. Then divide by the hours you can actually bill in a year, not the hours you work. That last part is what most rate advice gets wrong.
- Why can't I just divide my target salary by 2,080 hours?
- Because you cannot bill 40 hours a week. Sales, admin, email, and downtime are unpaid, so real billable time is usually 20 to 30 hours a week. Dividing by 2,080 gives a rate that quietly loses money.
- Should I set aside money for tax?
- Yes. As a freelancer no one withholds tax for you, so a chunk of every payment is not really yours. This calculator grosses your target income up so the rate covers it. Confirm your real rate with an accountant.
- Is this the most I should charge?
- No, it is the floor. It is the minimum rate that keeps you in business at your target income. Once you know it, price by the value you deliver, which is often well above the floor.
Know your number, then get paid it
Raoura turns your rate into proposals clients accept, contracts they sign, and invoices they pay by card, so the number you calculated is the number that lands. One flat plan, $17 a month.
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