Work backwards from the income you want to the hourly rate you need to charge — covering taxes, expenses and unbilled time.
The calculator starts with the income you want to take home, divides it by (1 − tax rate) to find the pre-tax amount, and adds your business expenses. That gives the revenue you need each year. It then divides by your billable hours: billable hours per week × weeks worked per year. The result is the lowest rate that meets your goal.
Freelancers spend a large share of the week on work nobody pays for: finding clients, writing proposals, bookkeeping, email and learning. Most people can bill 20–30 hours in a 40-hour week. Using 40 would leave you short of your target every year.
Use the hourly figure as a floor. For well-defined work, pricing per project often earns more, because you are paid for the result and not the time — quote it with the quote generator. When scope is unclear, bill by the hour with the hourly invoice generator. Adding a margin for risk and profit? Check it with the markup calculator.
Add your target take-home income and business expenses, gross up for taxes, then divide by the hours you can realistically bill in a year. Billable hours are always fewer than hours worked.
Most freelancers bill between 20 and 30 hours a week. The rest goes to admin, sales and unpaid time.
A rough 25–30% covers income tax and US self-employment tax for many freelancers, but your real rate depends on your income and state. Ask an accountant for an accurate figure.
Yes, if the market allows. The result is a minimum. Specialist skills, urgent work and difficult clients all justify a higher rate.