Free Freelance Hourly Rate Calculator: What Should I Charge?
Work out the minimum hourly rate you need as a freelancer or independent contractor, from the income you want, your business costs, your billable hours and 2026 self-employment tax, plus the day rate and monthly revenue it takes.
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What hourly rate do you need as a freelancer to earn what you would earn in a job? Usually much more than the job's hourly wage: you pay both halves of Social Security and Medicare, your own health insurance and retirement, your business costs and every hour you cannot bill. This free freelance hourly rate calculator works out the minimum rate from the income you want, with 2026 self-employment tax built in.
Freelance hourly rate calculator
Self-employment tax uses the 2026 rules: 15.3% on 92.35% of net profit, with the 12.4% Social Security part only up to the $184,500 wage base. The 0.9% Additional Medicare Tax on high incomes and income tax are not included. The result is a minimum; your market and experience set the actual price.
Key takeaways
- To earn $75,000 a year plus $6,000 for health insurance and retirement, with $6,000 of business expenses, 25 billable hours a week for 46 weeks and a 10% buffer, you need about $95.97 an hour.
- A $75,000 salary works out to about $36 an hour over 2,080 hours, so the freelance rate is more than twice as high for the same income.
- Billable hours matter most: at 35 billable hours a week instead of 25, the same goals need about $68.55 an hour.
- Self-employment tax is 15.3% on 92.35% of net profit, about 14.13% of profit for profits up to roughly $199,800.
How the calculator works
- What you need to keep: the income you want plus the health insurance and retirement savings you pay yourself.
- Self-employment tax: the calculator finds the net profit that leaves that amount after self-employment tax. Up to about $199,800 of profit, that is the amount ÷ (1 − 0.1413): $81,000 ÷ 0.8587 = $94,328, which includes $13,328 of self-employment tax.
- Business expenses and buffer: it adds your expenses and the safety buffer to get the revenue you need: ($94,328 + $6,000) × 1.10 = $110,361.
- Billable hours: it divides by the hours you can bill in a year: 25 × 46 = 1,150 hours, so $110,361 ÷ 1,150 = $95.97 an hour.
Hourly rate = (net profit needed + business expenses) × (1 + buffer) ÷ (billable hours per week × working weeks)
Why a freelance rate must be higher than a wage
| Cost | Employee | Freelancer |
|---|---|---|
| Social Security and Medicare | 7.65% of pay; the employer pays another 7.65% | 15.3% on 92.35% of net profit |
| Health insurance | Often partly paid by the employer | Paid in full |
| Retirement savings | Employer match is common | Own SEP IRA or solo 401(k), no match |
| Vacation, holidays, sick days | Usually paid | Unpaid |
| Equipment, software, insurance | Provided | Your own business expenses |
| Finding clients, admin, invoicing | Paid working time | Unpaid, not billable |
A common rule of thumb is to divide the salary you want by 1,000, so $75,000 becomes $75 an hour. It is easy to remember but ignores your actual costs and billable hours; in the example above it would leave you about $21 an hour short.
Billable hours change everything
Few full-time freelancers bill 40 hours a week. Finding clients, writing proposals, sending invoices, bookkeeping, learning and admin all take time you cannot charge for. Count only the hours you can realistically bill. With the example goals and 46 working weeks:
| Billable hours per week | Billable hours per year | Hourly rate needed |
|---|---|---|
| 15 | 690 | $159.94 |
| 20 | 920 | $119.96 |
| 25 | 1,150 | $95.97 |
| 30 | 1,380 | $79.97 |
| 35 | 1,610 | $68.55 |
| 40 | 1,840 | $59.98 |
Hourly rate, day rate or project price?
- Hourly: simple and fair when the scope is unclear. Track your time carefully.
- Day rate: common for on-site or full-day work. The calculator shows 8 billable hours at your rate.
- Project price: estimate the hours, multiply by your rate and add a buffer for changes. Put it in writing with our estimate generator.
- Retainer: a fixed monthly fee for a set amount of work or availability, which smooths your income.
Taxes to plan for as a freelancer
- Self-employment tax: 12.4% Social Security on net earnings up to the 2026 wage base of $184,500, plus 2.9% Medicare on all of it. An extra 0.9% Medicare tax applies above $200,000 ($250,000 married filing jointly). See our guide to self-employment tax.
- Income tax: not included in the rate, just as a salary is quoted before income tax. You can deduct half of your self-employment tax, and many freelancers can deduct up to 20% of their qualified business income.
- No withholding: clients do not withhold tax for you, so pay quarterly estimated taxes and set money aside from every payment.
- Sales tax: some states tax certain services. Check your state and use the sales tax calculator if you need to add it.
Frequently asked questions
How much should I charge per hour as a freelancer?
At least enough to cover the income you want, self-employment tax, insurance, retirement, business expenses and unbillable time, divided by the hours you can bill. Then compare that minimum with what clients in your field pay for your experience.
How many billable hours does a freelancer have?
It depends on the work and how much time sales and admin take. Many freelancers plan with 20 to 30 billable hours a week rather than 40. Use your own records: track a few weeks and count what you could charge.
Should I include taxes in my hourly rate?
Include self-employment tax, because an employer would pay half of it for an employee. Income tax is usually left out of the comparison, because salaries are also quoted before income tax.
How do I turn a salary into a freelance rate?
Enter the salary as the income you want, add the benefits an employer would have paid, your business costs and your realistic billable hours. The calculator shows the rate that gives you a comparable income.
Can I raise my rate later?
Yes. Many freelancers review their rates once a year or when costs rise. Give existing clients notice and apply the new rate to new projects or after a set date.
