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Stop guessing your hourly rate. This calculator factors in self-employment taxes, non-billable time, and business expenses — the variables most freelancers ignore until it's too late.

Calculate My Rate → Free forever · 2026 tax brackets
The hidden math problem

Most calculators use salary ÷ 2,080 hours. That ignores self-employment taxes (~15%), non-billable admin time (~30%), and business expenses. The result? Most freelancers underprice by 40–60%.

The wrong way $38/hr $80k ÷ 2,080 hrs
vs
The real number $76/hr After taxes, expenses & time
2026 Tax brackets
$0 Cost, forever
SE Tax Exact formula
The Calculator

Your personalized rate

Adjust the inputs below and your recommended rate updates instantly.

Your Details

What you want to take home after all taxes and expenses

10%

Extra above your floor rate — for slow months, growth, and retirement

40 hrs

Total hours worked per week, including admin and non-billable time

70%

Only ~60–75% of a freelancer's time is billable. Be honest here.

20 days

Paid days off per year — most freelancers forget to account for these

$500

Software, tools, marketing, office, insurance, etc.

Self-Employment Tax ~14.1%
Federal Income Tax (est.) ~16.0%
Effective Combined Rate 30.0%

SE tax applies to 92.35% of net earnings; half is deductible. QBI deduction and 2026 standard deduction ($16,100) are included. Consult a tax professional for your specific situation.

Recommended Hourly Rate
–
vs $36/hr the naive way +X% more
Floor rate (no profit buffer) –
The results provided by this calculator are estimates for informational purposes only and do not constitute professional tax, financial, or legal advice. Tax rates are based on projected 2026 US Federal brackets and do not include state or local taxes. Please consult a certified tax professional (CPA) for advice specific to your business.
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Weekly Project Rate – at 40 hrs billed
Monthly Equivalent – gross revenue
Annual Taxes – SE + federal
Business Expenses – per year
Gross Revenue Target –
Less: Taxes –
Less: Expenses –
Your Net Income –

Revenue Breakdown

– net

You'll have – billable hours across – working weeks this year — that's – hrs/week actually invoiceable to clients.

The Problem

Why the simple math fails

Dividing a salary by 2,080 ignores three costly realities of self-employment.

01

Taxes take 28–35%

Self-employed? You pay both sides of payroll tax — plus income tax. A $80k goal needs ~$114k in gross revenue before you see a dollar.

02

Only ~70% of your time is billable

Proposals, admin, invoicing, networking, professional development — none of it gets invoiced. Pricing on 40 hrs ignores 12 hrs of invisible work.

03

Expenses compound fast

Software, equipment, marketing, coworking, professional insurance — $500–1,500/month is normal. Every dollar of expenses increases your required rate.

FAQ

Common questions

Everything freelancers ask when they first run their numbers.

Billable percentage is the share of your working hours you can actually charge clients. In a 40-hour week, you might spend 28 hours on client work (70%) and 12 hours on admin, proposals, networking, and professional development. Track your time honestly for two weeks — most freelancers discover their real number is 60–75%, not 100%.
The floor rate is the absolute minimum you need to meet your financial goals assuming perfect conditions. The recommended rate adds a profit margin buffer for slow months, late-paying clients, unexpected expenses, and business reinvestment. Always price above your floor — treat it as a warning line, never a target.
As a freelancer you pay both the employee AND employer portions of Social Security and Medicare — 15.3% total, applied to 92.35% of net earnings (the effective rate is ~14.1%). The good news: half of SE tax is deductible on your income return. This calculator uses the exact IRS formula, not an estimate.
Absolutely. Health insurance is one of the most-overlooked freelance costs. If you pay $500–800/month for coverage, that's $6,000–9,600/year your revenue must cover. The good news: self-employed health insurance premiums are fully deductible, which reduces your taxable income.
At minimum, annually — or whenever there's a significant change: relocating, adding dependents, inflation, scaling up your tool stack, or leveling up your expertise. Many six-figure freelancers recalculate every 6 months and raise rates proactively rather than reactively.
Hourly pricing protects you from scope creep and is easy to audit. Project pricing rewards efficiency and lets your income decouple from the clock — you earn more as you get faster. Most experienced freelancers use project pricing anchored to an internal hourly rate. This calculator gives you that anchor number.
Every vacation day reduces your annual billable hours. Taking 15 vacation days instead of zero shrinks your billable time by ~3%, which means your rate must be ~3% higher to hit the same income goal. Factor in holidays, sick days, and conference attendance too — the math adds up quickly.
Technically yes — if every assumption holds perfectly. But reality is messier: some clients don't pay on time, some projects run over, some months are slow. The floor rate assumes 100% collection efficiency and zero surprises. The recommended rate builds in the buffers that make freelancing sustainable long-term.

From the Guide

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