$
/ year
$20k$135k$250k
You should bill
$0.00/ hour
to take home your target after tax and expenses
What the rate has to cover
Per year
Required hourly rate$0.00
Your take-home$0
Tax set-aside$0
Business expenses$0
Revenue you must bill$0
Billable hours / year 1,150 hrs0
How to price your freelance work
The most common freelance mistake is copying an employee's hourly rate. An employee who earns $70,000 costs their employer far more — payroll taxes, health insurance, equipment, paid holidays, and the hours they spend in meetings that a client never sees. As a freelancer you carry all of that yourself, and you can only bill a fraction of your working week.
This calculator starts from the number that matters — the cash you want to keep — and works backwards. It adds your tax set-aside and business expenses to reach the revenue you must bill, then divides by your billable hours (not the hours you work). Twenty-five billable hours a week over 46 weeks is only 1,150 hours a year, so the same take-home needs a much higher rate than a salary would suggest. Adjust the fields to match your reality and quote with confidence.
Common questions
How do I calculate my freelance hourly rate?
Add the income you want to keep, the tax you'll owe, and your business expenses to get the revenue you must bill. Divide that by the hours you can actually bill in a year — usually far fewer than 2,080. This tool does it for you.
Why is my freelance rate higher than an equivalent salary?
Because you bill only part of your time and cover costs an employer normally pays: self-employment tax, health insurance, software, equipment and unpaid admin. A $70,000 take-home target often needs a rate well above the $34/hour a $70k salary implies.
How many hours can a freelancer actually bill?
Realistically 50–70% of your working hours. The rest goes to sales, admin, invoicing and downtime. Many full-time freelancers bill 20–30 hours a week, not 40 — set the billable-hours field accordingly.
How much should I set aside for taxes?
In the US, self-employed workers owe income tax plus 15.3% self-employment tax. A set-aside of 25–35% of profit is a common rule of thumb — check with a tax professional for your situation.