How this tool works
This calculator adds your desired income and business expenses, adjusts the total for estimated tax, divides it by your annual billable hours, then adds a 20% operating buffer.
Freelance Rate Calculator
Calculate a freelance hourly rate, buffered rate, day rate, and billable-hours target from income goals, expenses, taxes, and time off.
- Browser-based
- No signup
- Copy result
Inputsfreelance rate calculator
Formula or template logic
annualGoal = desiredMonthlyIncome * 12; annualExpenses = monthlyExpenses * 12; annualNeedBeforeTax = annualGoal + annualExpenses; taxAdjustedAnnualNeed = annualNeedBeforeTax / (1 - taxPercentage / 100); annualBillableHours = billableHoursPerWeek * (52 - weeksOff); minimumHourlyRate = taxAdjustedAnnualNeed / annualBillableHours; recommendedHourlyRate = minimumHourlyRate * 1.2; dayRate = recommendedHourlyRate * 8
Example use case
If you want 5,000 per month, spend 800 per month on business expenses, estimate 25% tax, bill 25 hours per week, and take 4 weeks off, the calculator shows the minimum hourly rate and a safer buffered rate.
Frequently asked questions
What is a freelance rate calculator?
It estimates the hourly and day rate you need to charge based on income goals, costs, taxes, and billable hours.
Why include expenses?
Expenses reduce what you actually keep. Including them makes the rate more realistic.
Why does it add a 20% buffer?
The buffer leaves room for admin time, sales time, unpaid work, and normal business risk.
Should I charge hourly or per project?
Use the hourly rate as a baseline. For fixed projects, estimate time and add buffers for complexity and revisions.
Is this tax advice?
No. It is a planning estimate. Ask a qualified tax professional for tax advice.