Freelancer Rate Calculator
Find your ideal hourly, daily, and project rate based on your income goals, expenses, taxes, and actual billable hours.
Income Goal
What you want to actually take home after taxes
Taxes
US: 15.3% (Social Security + Medicare)
Your effective federal + state rate
Business Expenses
Software, equipment, office, travel
SEP IRA, Solo 401k contribution
Availability
% of working time that's client-billable (60% is typical)
Your Hourly Rate
$172
Minimum to hit your income goal
Daily Rate (8 hrs)
$1,373
Weekly Rate
$6,867
Monthly Retainer
$16,481
The Math
Equivalent employee salary
An employee earning $100,000/yr makes ~$48/hr. You need to charge $172/hr to match that take-home as a freelancer. That's 3.6x more.
How to Calculate Your Freelance Rate
Most freelancers undercharge because they compare their hourly rate to employee salaries. But as a freelancer, you're responsible for taxes, insurance, retirement, equipment, and all the non-billable time (marketing, admin, invoicing).
The 60% Rule
On average, freelancers spend only about 60% of their working hours on billable client work. The rest goes to finding clients, admin, learning, and overhead. Your rate needs to account for this.
Pricing Strategies
- Hourly: Best for ongoing or unpredictable scope work
- Daily/Weekly: Common for consulting engagements
- Project-based: Best for defined deliverables (multiply hourly rate by estimated hours + 20% buffer)
- Value-based: Price based on the value you deliver, not time spent