Back into your hourly rate from income goals, taxes, overhead, and billable hours. Set a rate that actually works for your life, not just your client.
All rates and projections are estimates based on inputs provided and do not guarantee actual earnings.
Tax calculations are simplified models — consult a CPA for accurate tax planning.
This tool does not constitute financial, legal, or tax advice.
Take your target annual income, add self-employment taxes (roughly 25-30%), overhead (software, equipment, insurance), and divide by your realistic billable hours per year — not your total working hours. Most freelancers bill 50-65% of their working hours. The calculator does this math automatically.
Working hours include everything you do — client work, admin, sales, invoicing, professional development. Billable hours are only the time you charge clients for. The gap is usually 35-50% for solo freelancers, which is why your hourly rate needs to cover your non-billable time too.
Not necessarily. High-value, specialized work (strategy, architecture, complex builds) can command a premium rate. Routine or commodity work may be priced lower. Many freelancers set a blended target rate using this calculator and then adjust per-project based on scope and complexity.
Add these to your overhead section. Health insurance for a solo freelancer runs $400-900/month depending on coverage. A 10-15% retirement contribution on your target income is a reasonable planning baseline. Both reduce your effective take-home and must be priced into your rate.