Required gross income
$0.00
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Freelance Hourly Rate Calculator
Find the hourly rate that meets your target income — accounting for billable hours, annual overhead and what you owe in taxes.
your freelance hourly rate
$0.00
Billable hours / year
0
Monthly gross
$0.00
Formula: (target + overhead) ÷ (1 − tax rate) = required gross; required gross ÷ billable hours = hourly rate. Salaried jobs bill ~2,000 hours; freelancers realistically bill 1,000–1,500.
Why freelancers charge more
You're paying for taxes, healthcare, equipment, downtime and non-billable work. Grossing up your target income by the tax rate and adding overhead ensures the hours you bill actually deliver the take-home you planned for.
How to set freelance rates
Hourly rate calculation: (desired annual salary plus overhead plus business costs) divided by billable hours per year. Full-time has ~2080 hours but freelancers average only 1200-1600 billable hours due to admin, marketing, and downtime.
Frequently asked questions
How many billable hours does a freelancer work?
Realistically 1,000–1,500 a year — the rest goes to admin, marketing and unpaid work. A 40-hour salaried equivalent is ~2,000 hours.
Should my freelance rate include taxes?
Yes — divide your required net by (1 − tax rate) so the gross rate covers what you'll owe. Many freelancers budget 20–35% for taxes.
Last updated — rates and figures change over time, so always confirm with the current source.
Figures are estimates for general information, not financial advice — see our disclaimer.