Build your rate
Honest defaults — adjust anything to match your real numbers.
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How the number is built
Start from take-home
Most calculators start from a market-rate guess. This one starts from the income you actually need, and works backward from there.
Account for the gaps
Vacation, admin, sales calls, sick days — only some of your hours are billable. We size the rate around the hours you will really invoice.
Cover costs and tax first
Software, insurance, and your tax buffer come off the top, so the rate you see is the one that actually clears, not a number that just looks fair.
How to Set Your Freelance Hourly Rate
Setting a freelance rate is one of the most important financial decisions an independent professional makes — and one of the most mishandled. Most freelancers pick a number by looking at what competitors charge, adding a little, and hoping for the best. The right way is to start from one question: how much do I need to clear, after everything? Then work backward to find the hourly price that gets you there.
The Formula Behind This Calculator
Here is the exact math this tool uses:
- Billable hours per year = billable hours per week × working weeks per year
- Gross revenue needed = (desired take-home + annual expenses) ÷ (1 − tax rate)
- Minimum hourly rate = gross revenue needed ÷ billable hours per year
For example: if you want $80,000 take-home, have $6,000 in expenses, expect a 28% tax rate, and bill 25 hours a week for 46 weeks, you need to gross roughly $119,400. Divided across 1,150 billable hours, your floor rate is about $104/hr.
Why Billable Hours Matter More Than You Think
A common mistake is assuming that working 40 hours a week means billing 40 hours a week. In practice, client emails, proposals, invoicing, tax prep, and admin eat into the week significantly. Experienced freelancers typically bill between 20 and 30 hours per week even when working full time. A safe starting default is 25 billable hours per week and 46 working weeks per year.
How to Account for Taxes and Expenses
As a self-employed professional, you pay both sides of payroll taxes. In the US, an effective combined rate of 28–32% covers federal income tax, self-employment tax (15.3%), and average state taxes. Business expenses to include: software subscriptions, health insurance, home office portion, hardware depreciation, and professional liability insurance.
Freelance Rate Examples by Profession
Below are rough US market benchmarks for common freelance professions. Use them as a sanity check against your own calculator result, not as targets to aim at blindly.
| Profession | Experience | Typical Range | Midpoint |
|---|---|---|---|
| Graphic Designer | Mid-level | $45–$90/hr | $65/hr |
| Web Developer | Mid-level | $75–$150/hr | $110/hr |
| Full-Stack Engineer | Senior | $120–$220/hr | $160/hr |
| Copywriter | Mid-level | $50–$110/hr | $75/hr |
| Content Strategist | Senior | $85–$160/hr | $115/hr |
| Video Editor | Mid-level | $40–$90/hr | $60/hr |
| Motion Designer | Senior | $80–$175/hr | $120/hr |
| Social Media Manager | Mid-level | $35–$75/hr | $50/hr |
| UX/UI Designer | Senior | $90–$185/hr | $130/hr |
| Brand Consultant | Senior | $100–$250/hr | $150/hr |
When Your Calculated Rate Feels Too High
If the result surprises you, resist lowering your income target. The math is telling you something: either your current rate is too low, or your expenses and tax rate are higher than accounted for. A better response is to raise your rate gradually over time — new clients at the new rate, existing clients at the next renewal.
Project Rates vs. Hourly Rates
Once you have a solid hourly rate, use it as the basis for flat project pricing. Estimate hours, multiply by your rate, then add a 15–25% buffer for scope creep. Your day rate is simply your hourly rate multiplied by 7 or 8.
Frequently Asked Questions
What is a good freelance hourly rate?
There is no single good rate — it depends on your profession, experience, location, and target income. Use the calculator above to find your personal floor rate, then research market rates in your niche to position yourself appropriately.
How do I calculate my freelance day rate?
Your day rate is your hourly rate multiplied by the number of hours in a working day — typically 7 or 8. If the calculator gives you $100/hr, your day rate is $700–$800.
How many billable hours should I assume per week?
Most full-time freelancers realistically bill between 20 and 30 hours per week. The rest goes to non-billable tasks: communication, proposals, accounting, and marketing. Using 25 hours as a default is safe and realistic.
Should I charge more than my calculated minimum rate?
Yes, whenever the market allows it. Your calculated rate is a floor, not a ceiling. Specialization, fast turnaround, and a strong portfolio can justify charging 20–100% above your minimum.
What tax rate should I use in the calculator?
For US-based freelancers, 28–32% covers most situations. High-tax states (California, New York) may warrant 33–38%. Outside the US, use your country's self-employed rate.
How often should I raise my freelance rate?
At least once a year. A 5–10% annual increase is common. Set new clients at your new rate immediately, and move existing clients up at the start of their next contract.
Is this calculator accurate for freelancers outside the US?
The formula is universal. Adjust the tax rate to match your country's self-employment structure and enter expenses in your local currency equivalent.
Related Calculators
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Currency Converter
Convert your rate to client currencies before you quote.
Monthly Income
Forecast your monthly take-home from your current projects.
Project Rate Builder
Convert hours and scope into a flat project price.
Once you have a rate
About Rate / Slip
Rate / Slip is a free tool built for freelancers, consultants, and independent professionals who want to price their work with confidence. We believe every freelancer deserves a clear, honest answer to the question “what should I charge?”
The calculator uses a straightforward formula: desired take-home income plus expenses, grossed up for taxes, divided by realistic billable hours. No hidden assumptions, no upsells. The number is yours the moment you move a slider.
Have a question, suggestion, or found an error? We would love to hear from you.
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