Freelancing

Freelance Rate Calculator

Your rate has to cover taxes, expenses, vacation, and the hours you cannot bill. This works backward from your annual target to the hourly rate that makes the math work.

Last updated June 2, 2026

Use the result as a floor. If it is far above your market, adjust the target, billable hours, or costs.

Example values are shown so you can see how it works. Replace them with your own.

Desired annual take-homeWhat you want to keep before spending.

Annual business expensesSoftware, insurance, tools.

Billable hours per weekHours you can invoice.

Vacation weeks per yearTime off without income.

Tax reserveA rough set-aside, not a tax calculation.

Minimum hourly rate

$69.33/hr

Gross billings needed (year)$83,200
Billable hours (year)1,200 hrs
Required hourly rate$69.33/hr

Worth testing

Probably worth testing

This is the rate implied by your target, not a market quote. Compare it to what clients actually pay in your niche.

Suggested next steps

Compare the rate to recent quotes you have won or lost.
If it is too high, raise billable hours or adjust the income target.
Set aside the tax reserve from each payment, not at year end.

Estimates only, based on the numbers you enter. Nothing is saved to the page address. Tax figures are rough planning numbers, not filing advice.

Assumptions this calculator makes

Billable hours exclude sales and admin unless you add them to hours.
Tax reserve is a rough set-aside, not tax advice.

This is an estimate, not advice

Every result here is a rough model based only on the numbers you enter. Sidequity is an informational tool and does not provide professional, tax, legal, investment, or financial advice, and it makes no income guarantees. Any tax set-aside is a planning placeholder, not a tax calculation.

For decisions that affect your money, taxes, or business, review your situation with a qualified professional. See our full disclaimer.

How to use it

Enter a realistic billable hour count.
Include annual tool and insurance costs.

What this number means

The rate is a floor for pricing, not a recommendation to charge exactly that.

Common mistakes

Assuming 40 billable hours per week.
Skipping vacation weeks.
Ignoring expenses.

Frequently asked questions

Is this guaranteed income?

No. It is an estimate from your inputs. Real results vary.

What tax reserve should I use?

Many people start around 20 to 30 percent of profit as a planning set-aside. Confirm with a tax professional.

Why is net hourly low?

Fees, costs, and unpaid time all reduce what you keep per hour.

How do I improve the result?

Raise prices, cut costs, or work more efficiently before adding more hours.

Freelance Rate Calculator last updated June 2, 2026. Back to all calculators.