Freelance Rate Calculator
Calculate your freelance hourly and project rates based on desired income, overhead costs, billable hours, and profit margin. Get the minimum rate you need and recommended pricing for sustainable freelancing.
How much you want to take home annually
Typical: 20-30 hours (rest is admin, marketing, proposals)
Weeks you won't be working
For business growth, slow periods, and savings
Annual Overhead Costs
Include accounting, legal, phone, internet, professional development, etc.
Complete Cost Analysis
Account for salary, overhead, non-billable time, and profit margin in one calculation.
Project & Hourly Rates
Calculate both hourly rates and fixed project quotes with detailed breakdowns.
Sustainable Pricing
Build in profit margin for growth, slow periods, and long-term sustainability.
Frequently Asked Questions
How do I calculate my freelance hourly rate?
To calculate your freelance rate: (1) Determine your desired annual salary, (2) Add all annual overhead costs (insurance, software, equipment, etc.), (3) Divide by your total billable hours per year, (4) Add profit margin (typically 10-30%). Our calculator does this automatically, showing both your minimum break-even rate and recommended rate with profit built in.
What should I include in overhead costs?
Include health insurance, business insurance, software subscriptions, equipment, co-working space, internet, phone, marketing, professional development, accounting fees, and other business expenses. Track all costs that wouldn't exist if you had a traditional job. Don't forget: tax preparation, legal fees, bank fees, and depreciation of equipment.
How many billable hours should I expect?
Most freelancers have 20-30 billable hours per week. The rest goes to admin, marketing, proposals, invoicing, and professional development. Don't assume 40 hours - you'll underprice yourself. Start with 25 hours/week as a realistic estimate. As you grow, you might reach 30-32 billable hours, but rarely more without sacrificing business development.
What is a good profit margin for freelancers?
A healthy profit margin is 15-30%. This covers business growth, slow periods, unexpected expenses, and retirement savings. Don't just break even - your rate should include profit to sustain and grow your business. New freelancers might start at 10-15%, while experienced professionals often charge 25-30% or more.
Should I charge different rates for different clients?
Your minimum rate should be the same for all clients - it's based on your costs. However, you can charge premium rates for rush projects, complex work, difficult clients, or high-value clients. Always start from your calculated minimum. Many freelancers have a standard rate, a preferred client rate (lower for great long-term clients), and a premium rate (higher for rush work or difficult projects).
How do I calculate project rates?
Estimate total project hours (including revisions and communication), multiply by your hourly rate. Add a buffer (10-20%) for scope creep. Our calculator shows the breakdown: how much covers your salary, overhead, and profit. Always estimate conservatively - projects almost always take longer than expected. Consider value-based pricing for projects where you deliver significant business impact.