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Ballpark TaxEst. 2026 · Free tools

Freelance hourly rate calculator

Most freelancers price by dividing a salary by 2,080 hours and wonder why the money never adds up. This works backwards properly — from the take-home you want to the rate that delivers it.

Charge at least

Not enough detail yet

Enter the take-home you want and this works backwards to the rate that actually delivers it.

Revenue needed
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Billable hours
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Unbillable hours
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Weeks worked
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Take-home you want for the yearWhat you want left after tax — think of it as the salary you are replacing.
Weeks off per yearHoliday, sickness and public holidays. Employees get around six weeks in total.
Hours in a working week
Share of those hours you can actually billSales, admin, invoicing, learning and unpaid revisions are not billable. Most freelancers land at 60–75%.
Business expenses per yearSoftware, hardware, accounting, insurance, subscriptions.
Health insurance per year
Retirement contributions per year
Effective tax rate you expectIncome tax plus self-employment tax as a share of profit. 25–30% is a common range.
Take-home you want$0
Retirement contributions$0
Tax on your profit$0
Business expenses$6,000
Health insurance$6,000
Revenue you need to invoice—

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Common questions

How do I work out my freelance hourly rate?

Start from the take-home you want, add the tax you will owe on it, add business expenses, health insurance and retirement, then divide by the hours you can actually bill — not the hours you work. The gap between those two numbers is what most rate calculations miss.

What percentage of my hours will be billable?

Most established freelancers bill 60–75% of their working hours. Sales, admin, invoicing, learning and unpaid revisions fill the rest. Assuming 90% billable is the single most common way a freelance rate ends up being a pay cut.

Why is a freelance rate so much higher than an equivalent salary?

Because it has to cover things an employer used to pay for: both halves of payroll tax, health insurance, retirement, paid holiday, sick days, equipment, software and the weeks between contracts.

What people use next

Estimates based on published federal rules for tax year 2026. State and local tax is not included. This is general information, not advice about your situation.