Why your rate must be higher than you think
Employees compare a freelance rate to their old salary and undercharge badly. As a freelancer you pay your own taxes, cover your own tools and software, get no paid leave, and can only bill a fraction of your working hours. Your rate has to absorb all of that. This calculator works backwards from the take-home pay you actually want to the rate that delivers it.
From hourly rate to a winning quote
Use the hourly figure as your internal cost of time. For project work, estimate the hours involved, multiply by this rate, and present a single fixed price — clients prefer certainty, and a margin protects you when a project runs long.
Frequently asked questions
How do I set my freelance hourly rate?
Start from the take-home pay you want, add the taxes and business expenses you must cover, then divide by the hours you can actually bill (which is far fewer than the hours you work). This calculator does that maths and adds a profit buffer.
Why are billable hours lower than my working hours?
A big share of self-employed time goes to admin, sales, invoicing, learning and breaks — none of which you can bill. Most freelancers bill only 50–70% of their working hours, so your rate must cover the unbillable time too.
Should I charge hourly or per project?
Many freelancers quote per project but use an hourly rate internally to price it. Calculate your true hourly cost here, estimate the hours a project needs, and quote a fixed price with a margin on top.
What profit margin should I add?
A buffer of 10–25% covers unpaid time, late payments, slow periods and reinvestment in your business. Without it you’re only breaking even, not building anything.
Last updated: June 2026