Rate Calculator

Stop guessing what to charge. Plug in your numbers and get your real rate.

Income Goals

Target Annual Income ($)

Annual Business Expenses ($)

Profit Margin (%)

20%

Work Schedule

Billable Hours per Day

Working Days per Week

Time Off

Vacation Weeks per Year

Sick Days per Year

Your Rates

Hourly Rate

$80

per hour

Daily

$475

Weekly

$2,375

Monthly Retainer

$9,500

Summary

Working days/year240

Billable hours/year1440

Annual revenue needed$114,000

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Freelance Rate Calculator: What to Charge as a Freelancer

Pricing is one of the hardest parts of freelancing. Charge too little and you burn out. Charge too much and you lose clients. This calculator helps you find the sweet spot.

The Formula

(Target Income + Expenses + Profit Margin) / Billable Hours = Your Rate

Why Billable Hours Matter Most

Most freelancers overestimate their billable hours. You do not work 8 billable hours a day. Between emails, admin, marketing, invoicing, and learning, 5–6 billable hours is realistic.

The Profit Margin

Add 15–30% profit margin to cover unexpected expenses, savings, and growth. Without a margin, one slow month can put you in the red.

pro tip

Your rate is not what you earn per hour — it's what you need to charge per billable hour to cover everything: income, taxes, expenses, time off, and profit. That distinction matters.

What Goes Into Your Rate

Income Goals

How much you want to take home after taxes and expenses. Start with the salary you'd accept at a full-time job, then add 25–40% because you're covering your own benefits.

Business Expenses

Software, hardware, insurance, coworking space, accounting, marketing. Most freelancers significantly underestimate this. Track everything for three months before you set a rate.

Billable Time

The hours you can actually bill clients. Subtract admin, marketing, learning, invoicing, and breaks. For most freelancers, 60–70% of working hours are billable.

Frequently Asked Questions

How many hours should I bill per day?: Most freelancers bill 5-6 hours per day. The rest goes to admin tasks, marketing, and learning. Start with 6 hours as a realistic estimate.
Should I charge hourly or project-based?: Both have merits. Hourly is simpler and works well for ongoing work. Project-based can be more profitable as you get faster. Many freelancers use hourly for small tasks and project-based for larger engagements.
What about taxes?: Include taxes in your 'Annual Business Expenses' field. The amount varies by country — in the US, freelancers typically set aside 25-35% of income for taxes. Check your local tax rules.
How do I justify my rates to clients?: Focus on the value you provide, not the hours you work. Show past results, use case studies, and frame your rate in terms of ROI for the client. 'This website will generate $50K in leads' is more compelling than '$100/hour'.