Freelance Hourly RateCalculator 2025–2026
What hourly rate do you need to charge to actually hit your income goals? Factor in taxes, health insurance, retirement, and slow months — get your real number.
Your Goals & Costs
The amount you want in your pocket after tax.
Use our Tax Calculator above for your exact rate.
Buffer for slow months, non-billable work, and business growth.
This calculator helps you find your minimum viable rate. Adjust upward based on your experience, niche, and market demand.
Enter your target salary
We'll calculate the exact hourly rate you need to charge to hit your goals after tax, health insurance, and retirement.
Why freelancers undercharge (and how to stop)
The most common freelancer mistake is comparing their hourly rate to an employee's hourly wage. A $50/hr freelancer is NOT equal to a $50/hr employee.
When you work for a company, they pay: employer Social Security (6.2%), employer Medicare (1.45%), health insurance (~$500/mo), retirement matching (3–5%), paid vacation (2–4 weeks), sick days, equipment, and office space. As a freelancer, all of that comes out of your rate.
The hidden costs in a $100K salary equivalent
Frequently Asked Questions
How do I calculate my freelance hourly rate?
Start with your target take-home pay, then work backwards. Add taxes (typically 28–35% for freelancers), health insurance, retirement savings, and a profit margin for slow months. Divide the total by your billable hours per year. This calculator does all of that in seconds.
Why is my freelance rate higher than my equivalent salary?
As a freelancer, you cover costs your employer used to pay: employer payroll taxes (7.65%), health insurance, retirement matching, paid vacation, and sick days. You also have non-billable hours (admin, proposals, business development) that you need to factor in.
What is a good profit margin for freelancers?
Most experienced freelancers build in 20–30% profit margin. This covers slow months, non-billable work, unexpected expenses, and business growth. Think of it as your business operating buffer, not personal take-home pay.
How many hours should I bill per week?
Realistically, freelancers bill 20–30 hours of a 40-hour week. The rest goes to admin, sales, networking, and learning. Beginners often overestimate billable hours, leading to undercharging. Use a conservative number in this calculator.
Should I charge an hourly rate or project rate?
Both have merits. Hourly is good for open-ended projects. Project pricing is better for defined scope — and generally earns more because clients focus on value, not hours. Use this calculator to find your minimum hourly floor, then price projects above it.