Freelance Hourly Rate Calculator

The formula is: Hourly Rate = (Desired Salary + Business Expenses + Taxes) / Billable Hours per Year. For example, if you want $80,000 salary, have $20,000 expenses, 25% tax rate, and 1,200 billable hours: Rate = ($80,000 + $20,000 + $26,667) / 1,200 = $105.56/hour.

A full-time freelancer typically has 1,200-1,500 billable hours per year (about 25-30 per week). The rest goes to admin, marketing, invoicing, and time off. Part-time freelancers might target 600-800 hours. Account for holidays, sick days, and vacation when calculating.

Hourly billing is simpler and ensures you are paid for all time spent. Project-based pricing can be more profitable for efficient work but risks scope creep. Many freelancers use hourly rates internally to quote project prices. This calculator helps you find the hourly baseline.

Freelancers pay self-employment tax (15.3% in the US) plus income tax. Set aside 25-35% of gross income for taxes. This calculator factors in your estimated tax rate so the output rate covers your tax obligations. Always consult a tax professional for your specific situation.