Freelance Rate Calculator
Convert target annual salary into minimum billable hourly and day rates, taking into account self-employment taxes, business overhead, and non-billable hours.
Income Goals & Overhead Expenses
SaaS, insurance, accountant, laptop, mobile
Income + self-employment tax bracket
Working Schedule & Billable Hours
48 working weeks / year
Typical freelancers bill 20–25 hrs (rest is admin/sales)
Base rate needed to cover taxes, overhead, and take-home goals
$867
$10,838
Annual Revenue Breakdown
How to Price Your Freelance Services Correctly
The most common mistake new freelancers make is dividing an employee salary by 2,080 hours (40 hrs/week × 52 weeks). Employees receive paid time off, employer-matched taxes, and health benefits, while freelancers must pay self-employment tax and fund their own benefits.
The Billable Hours Reality:
Freelancers spend 30% to 50% of their working hours on unpaid non-billable tasks: client communication, writing proposals, invoicing, accounting, and marketing. A 40-hour work week generally yields only 20 to 25 truly billable client hours.
How to Use Freelance Rate Calculator (Step-by-Step)
Enter your desired annual net take-home salary.
Provide your annual business overhead expenses and estimated tax rate.
Set your planned weeks off and realistic billable hours per week to see your required hourly and day rates.
Applications
Common Use Cases
- Convert a full-time employee salary into an equivalent freelance contract hourly rate.
- Account for unpaid non-billable time spent on sales, invoicing, and proposals.
- Budget accurately for business expenses and self-employment taxes.
Privacy Guarantee
Zero Server Uploads
Unlike traditional online converters that upload your confidential documents to external cloud servers, MultiToolX executes computations in your browser runtime via HTML5 Canvas, Web Crypto, and WebAssembly.
Your data never leaves your device and cannot be viewed, stored, or harvested by anyone.
How to Calculate Your Freelance Hourly Rate from Salary
A pragmatic formula to price freelance services. Factor in self-employment taxes, business overhead, and unpaid non-billable client acquisition time.
FAQ
Frequently Asked Questions
Why shouldn't I just divide my salary by 2,080 hours?
Freelancers don't get paid time off, must cover their own health benefits and equipment, and only bill 50-65% of their working hours. Dividing by 2,080 leads to severe underpricing.
How many hours per week can a freelancer realistically bill?
Most full-time freelancers bill between 20 and 25 hours per week. The remaining 15 to 20 hours are required for marketing, client management, proposals, and administrative overhead.
How much should I budget for self-employment tax?
In the United States and similar jurisdictions, freelancers typically set aside 25% to 35% of net profit for combined federal, state, and self-employment taxes.
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