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Freelancer Rate Calculator

Calculate your ideal freelancer hourly rate based on your target annual income. Accounts for taxes, benefits, and non-billable hours.

Freelancers can't just divide their target salary by working hours — you need to account for taxes (25-35%), health insurance, retirement, vacation time, and non-billable hours (admin, marketing, invoicing). This calculator helps you find the right hourly rate.

Tips for Freelancer Rate

1

Freelancers should charge 40-50% more than equivalent employees to cover taxes and benefits

2

Assume only 60-70% of your working hours are billable — the rest is admin, marketing, invoicing

3

Set a minimum project rate, not just hourly — small projects have disproportionate overhead

4

Raise your rates by 10% every year — if no clients push back, you're undercharging

Frequently Asked Questions

What hourly rate should a freelancer charge?
Take your target annual income, add 30% for taxes and benefits, divide by billable hours (typically 1,200-1,500/year, not 2,080). For a $80K target: ($80K + 30%) / 1,300 hours ≈ $80/hour.
Last updated: April 2026

Data sources: Standard mathematical formulas

For informational purposes only. Not financial, medical, or legal advice. Always consult a qualified professional for decisions affecting your finances or health.

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