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Tools / Business / Freelance Hourly Rate Calculator
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📊 Business

Freelance Hourly Rate Calculator

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:

Enter values and click Calculate to see chart

How to Use This Tool

  1. Enter the annual salary you want to earn.
  2. Enter your estimated annual business expenses (software, equipment, etc.).
  3. Enter your effective tax rate.
  4. Enter how many hours per year you expect to bill clients.
  5. Enter your desired profit margin for business growth.
  6. Click Calculate to see your ideal hourly rate.

The Formula

Hourly Rate = ((Desired Salary + Expenses) / (1 - Tax Rate) x (1 + Profit Margin)) / Billable Hours.

Why It Matters

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.

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