Freelance Hourly Rate Calculator

Freelancers often underprice their time. This calculator factors in your target salary, business expenses, taxes, and the reality that you cannot bill 24/7 to give you a realistic hourly rate that covers all costs.

How to Use This Tool

Enter your desired annual salary (what you want to take home).
Estimate your annual business expenses (software, equipment, insurance).
Enter your expected tax rate as a percentage.
Enter your realistic billable hours per year (typically 1000-1200 for freelancers).
Click Calculate to get your true hourly rate.

The Formula

Hourly Rate = [(Target Salary x (1 + Tax Rate)) + Expenses] / Billable Hours. This ensures your rate covers salary, taxes, and business costs — not just what you pocket.

Why It Matters

You want to earn $120,000/year as a freelancer. Accounting for 20% non-billable time, taxes, and $5,000 annual expenses, you need to charge $85/hour — far more than the naive $57/hour calculation.