Freelance & Contractor
Freelance Hourly Rate Calculator
Calculate the recommended hourly rate for U.S. freelancers based on income goals, expenses, and billable hours. Free, private, no account.
Know the numbers
How to use this calculator
Enter your desired annual pre-tax income, annual business expenses, billable hours per week, and weeks worked per year. Add an optional markup on costs.
A worked example
To earn $80,000 pre-tax with $12,000 expenses, 30 billable hours/week, 48 weeks, and 20% markup: the recommended rate is $76.67/hr. Break-even is $63.89/hr.
The calculation
Break-even rate = (desired income + expenses) ÷ (billable hours × weeks). Recommended rate = break-even × (1 + markup ÷ 100).
Before you use the result
This estimates the rate you should charge to meet your income target. It does not account for self-employment taxes, unpaid time, or variable income. Use the take-home pay calculator for tax estimates.
Common scenarios
Use this calculator whenever you need to verify your hours, check a paycheck, or prepare a timecard submission. The result is the same arithmetic the payroll department uses, displayed in a form you can inspect.
Calculation methodology: View formulas, limits, and corrections
Common questions about Freelance Hourly Rate Calculator
How do I account for taxes in my hourly rate?
Self-employment tax is roughly 15.3% of net income, plus federal income tax. Use the take-home pay calculator to estimate your total tax burden, then add that to your desired income when setting your rate.
How many billable hours should I target?
Most U.S. freelancers bill 25–35 hours per week. The rest goes to admin, marketing, and business development. Aim for 60–70% utilization as a realistic target.