Freelance Calc Pro
Stop Undercharging.Calculate Your True Rate.
Account for hidden costs, taxes, insurance, and non-billable hours. Find the exact rate you need to charge to meet your financial goals with confidence.
Living Expenses Monthly
Rent, Food, Utilities, Transport
Health, Life, Disability insurance
Business Costs Monthly
Adobe, GitHub, Hosting, SaaS
Rent, Internet, Electricity
Recommended: 25-30%
Time Investment
Admin, Marketing (Rec: 20-30%)
Target Profit
Net profit after all expenses and taxes
Minimum Hourly Rate
Where does the money go?
Reality Check
How to Calculate Your Freelance Hourly Rate
One of the biggest mistakes new freelancers make is taking their previous salary and dividing it by 2,080 (the standard number of working hours in a year). This method often leads to burnout and financial struggle because it ignores the hidden costs of running a business.
As a freelancer, you are responsible for everything an employer usually covers: taxes, health insurance, paid time off, retirement savings, and business expenses. Our Reverse Income Method helps you build a rate from the ground up, ensuring every hour you work covers these essentials.
1. Calculate Expenses
Sum up your personal living costs and business overheads. This is your "survival number".
2. Add Tax & Profit
Factor in taxes (often 20-30%) and your desired savings margin. Don't just break even—aim to thrive.
3. Determine Billable Hours
You can't bill 40 hours a week. Account for marketing, admin, and sick days to find your true capacity.
Frequently Asked Questions
What are "Non-Billable Hours"?
Non-billable hours are the time you spend working on your business rather than in it. This includes invoicing, replying to emails, marketing yourself on LinkedIn, learning new skills, and networking. Most successful freelancers spend 20-30% of their time on these tasks. If you don't account for them, you're essentially working for free during those hours.
Why is my freelance rate so much higher than my employee rate?
It has to be! An employee costing a company $50/hour actually costs them closer to $75-$100/hour once you factor in benefits, office space, and payroll taxes. As a freelancer, you absorb all those costs. Charging $100/hour as a freelancer might net you a similar lifestyle to a $50/hour employee.
How much should I set aside for taxes?
This varies by country and state, but a general rule of thumb is 25-30% of your gross income. It's always better to save too much than too little. Our calculator allows you to set a custom tax provision percentage to match your local laws.