Freelance Hourly Rate Calculator (2026)
Model the hourly rate you need to hit a real take-home after taxes, business costs, and the hours you can actually bill.
100% client-side. Your inputs stay in this browser.
Set your target take-home, realistic taxes, annual costs, and true billable hours, see the hourly rate that makes the math work.
Suggests display currency; tax percentages are your inputs.
Target annual take-home
After taxes, what you want in your pocket
Annual business expenses
Software, office, gear
Payroll / self-employment tax
Percent of net (US SE ~15.3%)
Effective income tax
Federal + state, marginal blend
Health insurance / benefits (annual)
Retirement contribution (annual)
Weeks worked per year
After vacation & sick time
Billable hours per week
Realistic invoice time
Minimum hourly rate
$130
Daily rate (8 h)
$1,037
Project buffer (×12 h)
$1,555
Required gross / yr
$155,502
More billable hours → lower rate
Slide to see your minimum hourly rate if you billed extra hours every week at the same gross target.
At 30 hours/week (48 weeks): minimum $108/h vs baseline $130/h.
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How this tool works
The calculator reverses the usual income equation. Instead of starting with revenue and subtracting costs, it starts with the money you want in your pocket and adds back everything that gets taken out along the way. It grosses up your take-home target for income tax and self-employment tax, then adds business expenses, health insurance premiums, and retirement contributions to get the total gross income you must earn. That gross amount divides by annual billable hours (weeks worked times hours billed per week) to produce your required hourly rate. The 15.3% US self-employment tax default covers both Social Security (12.4%) and Medicare (2.9%). The daily rate multiplies hourly by 8. The project rate applies a 1.5x buffer for scope creep, revision time, and admin overhead on fixed-bid work. A donut chart breaks down where each dollar of gross revenue goes across take-home, taxes, insurance, retirement, and expenses.
Worked example
Target take-home $80,000. Business expenses $5,000. SE tax 15.3%. Income tax 22%. Health insurance $6,000. Retirement $6,500. 48 weeks worked. 25 billable hours per week. Tax-adjusted gross: $80,000 / (1 - 0.22 - 0.153) = $127,591. Add costs: $145,091. Annual billable hours: 1,200. Required rate: $121/hour, $968/day, $1,452 project day. Increasing billable hours to 30 per week drops the rate to $101. The trade-off between billing fewer hours at a higher rate versus more hours at a lower rate is visible in real time with the sensitivity slider.
Frequently asked questions
Why is my required rate so much higher than I expected?
Because you are covering costs that a salaried employee never sees. Your employer pays half of FICA taxes (7.65%), typically contributes to health insurance, and absorbs overhead like software licenses and office space. As a freelancer, every one of those costs comes from your rate.
What is a realistic billable hours target?
Most freelancers bill 20 to 30 hours per week. The rest of working time goes to marketing, admin, invoicing, proposals, and client communication. A 40-hour billable week is unrealistic for solo operators. If you are just starting, use 20 hours. Experienced freelancers with established pipelines can aim for 25 to 30.
How do US self-employment taxes work?
Self-employed workers pay both the employee and employer portions of FICA: 12.4% Social Security (on net earnings up to the wage base) plus 2.9% Medicare. The total is 15.3%. You can deduct half of the SE tax from your adjusted gross income on your 1040, but the full 15.3% is still paid. This calculator uses the full rate.
Should I include retirement contributions in my rate?
Yes. As a freelancer, there is no employer 401(k) match. If you want to save for retirement, that money has to come from your billings. The default uses the Roth IRA limit ($6,500 for 2026), but if you use a SEP-IRA or Solo 401(k), you can contribute significantly more and should adjust accordingly.
Should I quote hourly or project-based?
Both are valid. Hourly is simpler for ongoing retainer work. Project-based pricing gives you upside when you work efficiently, but exposes you to scope creep. The project rate (1.5x daily) builds in a buffer for revisions and scope expansion. For first-time clients, many freelancers prefer project pricing with a clearly defined scope document.
How do I adjust for different currencies?
Select your currency in the dropdown. The math is the same regardless of currency. Adjust the tax rates to match your country's self-employment and income tax rates. The 15.3% SE tax default is US-specific.