Freelance guide

Freelance Rate Calculator Guide

A strong freelance rate covers more than the hours spent doing client work.

The basic formula

Annual revenue needed equals desired take-home income plus business expenses plus tax planning buffer. Hourly rate equals annual revenue needed divided by annual billable hours.

What to include

Billable hours: subtract sales, admin, learning, support, sick days, holidays, and unpaid proposal time.

Expenses: include software, hardware, accounting, banking fees, workspace, insurance, marketing, and professional development.

Taxes: self-employed workers may need to plan for income tax and self-employment or social insurance obligations depending on location.

Use the calculator

Model a conservative rate first, then test a growth target and compare the difference.

Open Freelance Rate Calculator