Freelance Rate
Start from the income you want, not the rate you dare to say out loud: three honest layers turn a yearly goal into an hourly rate — and show how far salary ÷ 2000 undersells you.
Anyone with the link can see the numbers included in it.
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Last reviewed: July 20, 2026 · Formulas verified by automated tests before every release.
What should my freelance rate be?
Rate = (target income + business costs) ÷ billable hours × slow-month margin. For a $75,000 goal: add 25% for self-funded costs, divide by 1,200 honest billable hours, multiply by 1.15 for thin months — about $90/hour, roughly 2.4× the naive salary ÷ 2000 figure. The gap is not greed; it is unpaid admin, client-hunting and vacations made visible.
The three layers, interactive
rate = (goal × (1 + costs%)) ÷ billable hours × margin
This is the calculator companion to our freelance rate guide — the guide tells the story, this page runs your numbers. The most consequential slider is billable hours: it is where self-employment optimism quietly bankrupts people, which is why the calculator pushes back above 1,500. Charging by the day? The day rate line does the ×8 for you.
Sources, assumptions and limitations
- Formula: rate = goal(1+costs)÷hours×margin; day rate = hourly × 8; naive comparison = goal ÷ 2000
- Assumptions: Costs entered as a percentage of the income goal (insurance, tools, taxes vary hugely by country — your accountant beats our default); margin 1.1–1.2 covers slow months, not luxury.
- Not included: Country-specific tax math, retainer vs project pricing, value-based pricing (all deliberately — this sets the floor, positioning sets the ceiling). Guidance, not financial advice.
- Last reviewed: July 27, 2026 by the CalcNotebook team
Frequently asked questions
How do I calculate my freelance hourly rate?
Three layers: (target income + business costs) ÷ realistic billable hours × a slow-month margin. A $75,000 goal with 25% costs over 1,200 billable hours at a 1.15 margin lands near $90/hr — not the $37.50 that salary ÷ 2000 suggests.
Why is salary ÷ 2000 wrong for freelancers?
Because 2,000 hours assumes every working hour is paid. Freelancers spend 30–45% of time on unpaid work — proposals, invoices, client hunting — and fund their own insurance, equipment, taxes and vacations. Halving the divisor and adding costs is not padding; it is the actual arithmetic of self-employment.
How many billable hours a year is realistic?
Most established solo freelancers land between 1,000 and 1,300. Enter more than 1,500 and the calculator will gently push back — high-hour assumptions produce rates that feel competitive and bank accounts that do not.
What if the resulting rate feels too high for my market?
The rate is the requirement your goal creates. If the market will not pay it, the honest levers are: raise the goal-supporting skills, narrow the niche, increase billable share, or consciously lower the income goal — quoting below the requirement and hoping is not a lever, it is a countdown.