Freelance Hourly Rate Calculator

Find the minimum hourly rate that pays you the take-home income you want after self-employment tax, federal tax, expenses and unbillable time.

By Thomas P. Checked against IRS Rev. Proc. 2025-32 & Schedule SE Updated

What you need

Minimum hourly rate

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Based on 0 billable hours a year

Day rate (8 billable hours)
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Revenue needed per year
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Federal + SE tax on that
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Invoice per month
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Estimate for information only — not tax, legal or financial advice. Federal figures for tax year 2026; state and local taxes are not included unless you enter them. Check your situation with a CPA or enrolled agent.

Start from the money you want to keep

Most new freelancers set a rate by taking an old salary and dividing by 2,080 hours. That rate is almost always too low, because it ignores three things: you pay both halves of Social Security and Medicare, you pay your own business costs, and you cannot bill for every hour you work. This calculator works backwards from the take-home pay you want to the rate that produces it.

How it works

  1. Take-home goal. What you want left after federal income tax and self-employment tax.
  2. Profit needed. The calculator finds the profit that, after 2026 federal tax and SE tax, leaves exactly that amount.
  3. Revenue needed. Profit plus your yearly business expenses.
  4. Billable hours. Billable hours per week × (52 − weeks off).
  5. Rate. Revenue needed ÷ billable hours.
Example — single, wants $70,000 take-home, $8,000 of expenses, 25 billable hours a week, 6 weeks off.
Profit needed ≈ $89,016 (federal + SE tax on it ≈ $19,016).
Revenue needed ≈ $97,016.
Billable hours: 25 × 46 = 1,150.
Minimum rate ≈ $84 an hour, or about $675 for an 8-hour billable day.

Be honest about billable hours

A 40-hour work week rarely means 40 billable hours. Finding clients, writing proposals, invoicing, admin and learning all take time no one pays for. Many freelancers bill somewhere between half and three-quarters of the hours they work. Start with a conservative number; if you end up billing more, the extra is a buffer.

Expenses people forget

  • Health insurance premiums (no employer contribution any more)
  • Retirement savings to replace an employer match
  • Software subscriptions, hardware, phone and internet
  • Professional liability insurance, accounting and legal fees
  • Coworking space, travel, conferences and training

Turning the minimum into a price

The result is a floor: the rate at which the business pays you what you asked for. Clients pay for outcomes and market rates, not for your costs, so check what others in your field charge. If the market rate is well above your minimum, charge the market rate. If it is below, you need more billable hours, lower costs, a different niche, or project pricing that rewards speed.

Frequently asked questions

Does this include state tax?

No. Add your expected state income tax to the expenses field to include it.

Should I charge by the hour or by the project?

Hourly is simplest when scope is unclear. Project pricing usually earns more once you can estimate the work well, because faster work is not penalized. Either way, knowing your minimum hourly rate tells you whether a project price is worth taking.