Freelance Rate Calculator — Set Your Hourly Rate
Free freelance rate calculator. Calculate your ideal hourly or project rate based on expenses and goals.
Formula: (Annual Expenses + Desired Profit) / Billable Hours per Year
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What Is This Calculator?
A freelance rate calculator helps independent professionals determine the minimum hourly rate needed to cover expenses and achieve income goals. Many freelancers undercharge because they do not account for taxes, insurance, software, non-billable time, and vacation.
How to Calculate
To calculate your freelance rate: 1) Add up annual expenses (rent, insurance, software, taxes — typically 25-30% of income). 2) Add your desired take-home profit. 3) Estimate billable hours per year (typically 1,000-1,500 out of 2,080 work hours). 4) Divide total by billable hours.
Examples
Example: Expenses of $50,000 + desired profit of $30,000 = $80,000 needed. At 1,500 billable hours: $80,000 / 1,500 = $53.33/hour minimum rate.
Recommended Tools
FreshBooks for invoicing and expense tracking. Toggl for tracking billable vs. non-billable time.
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