Free Freelancer Rate Calculator
Stop guessing your hourly rate. This 100% free tool helps you calculate a profitable rate based on your income goals, business expenses, taxes, and billable utilization. All calculations are 100% private and done in your browser.
1 Enter Your Target Income
Start with your desired annual salary. This is what you want to take home, before business expenses and taxes.
2 Add All Business Expenses
Include software, subscriptions, internet, coworking space, equipment, insurance, marketing - everything you pay for your business.
3 Set Your Tax Rate
Estimate your income tax rate (typically 20-30%). This helps you plan for taxes upfront.
4 Adjust Billable Utilization
This is THE most important metric! It's the % of your work hours spent on billable work. Most freelancers achieve 50-70%. If you work 40 hours at 60% utilization, only 24 are billable!
5 View Your Recommended Rate
Your recommended hourly and daily rates update instantly. Use sliders to run "what-if" scenarios.
Pro Tip: Download the PDF to save your calculation and show it to your accountant or business coach!
Who Is This Tool For?
This calculator is perfect for consultants, designers, writers, and any solopreneur who charges for their time. Whether you're just starting out or looking to validate your current rates, this tool helps you set sustainable pricing that covers your costs and provides a healthy profit margin.
Why You're Probably Under-Charging (And How to Fix It)
Most freelancers make a simple mistake: they divide their target salary by 2,080 (40 hours/week × 52 weeks). This ignores business expenses, taxes, vacation time, and most importantly, non-billable time.
What is "Billable Utilization"?
This is the most important metric for freelancers. You aren't billing 40 hours a week; you spend time on:
- Marketing and business development
- Invoicing and administrative tasks
- Learning new skills and tools
- Client communication and meetings
- Proposals and project scoping
A 60% utilization rate means only 24 of your 40 hours are billable. If you price your work based on 40 hours, you'll be underpaid by 40%!
The True Cost of Freelancing
When you work full-time for a company, they cover:
- Health insurance and benefits
- Paid vacation and sick days
- Equipment and software
- Office space and utilities
- Professional development
As a freelancer, you pay for all of this yourself. That's why your hourly rate must be significantly higher than an employee's hourly equivalent.
Frequently Asked Questions
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