Hourly Rate
Calculator
Calculate the rate you actually need to charge to hit your income goals.
$71.50
How to Calculate Your Freelance Rate
Setting your hourly rate is one of the most challenging parts of being a freelancer. Many beginners simply look at what others are charging, but this is a mistake. Your rate should be based on your individual financial needs, your business overhead, and your billable capacity.
Key Factors to Consider
- Billable vs. Non-Billable Hours: You won't spend 40 hours a week on client work. You need to account for marketing, admin, and invoicing.
- The Cost of Being Human: Unlike employees, freelancers don't get paid for sick days or vacations. You must bake these "missing" hours into your rate.
- Taxes and Insurance: Depending on your location, you might need to set aside 25% to 40% of your income for taxes and social security.
Add your desired net income and annual business expenses. Divide this total by your annual billable hours (working weeks × hours per week). This gives your base rate. We recommend adding 30% for taxes.
Billable hours are the hours you actually spend working for clients. As a freelancer, you cannot bill for admin, marketing, or sick days, so your rate must be higher to cover this non-billable time.
The Safety Rate includes a recommended 30% buffer to cover income taxes, health insurance, and unexpected business costs that aren't included in your monthly expenses.