Freelancers often undercharge by ignoring taxes, expenses, and non-billable time. This calculator determines your true hourly rate by factoring in desired salary, business expenses, taxes, and a profit margin for growth.
Hourly Rate:
Effective Rate:
How to Use This Tool
Enter the annual salary you want to earn.
Enter your estimated annual business expenses (software, equipment, etc.).
Enter your effective tax rate.
Enter how many hours per year you expect to bill clients.
Enter your desired profit margin for business growth.
You want to earn $80,000/year as a freelancer. After 30% taxes, 20% non-billable time, $5,000 business expenses, and 20 weeks vacation, you need to charge $75/hour.