Freelance Rate Calculator

Calculate your true freelance rate. Never undercharge again.

Your Details
$
What you want to actually pocket after taxes & expenses
Realistically 20-30 for most freelancers (meetings, admin, marketing eat time)
$
Software, equipment, insurance, coworking, etc.
Self-employment + income tax
401k/IRA contribution goal
Your Rate
$94
per hour minimum
$118,000
Annual Gross Needed
1250 hrs
Billable Hours/Year

hours
Project Quote: $3,776
(40 hrs × $94/hr)

W2 Equivalent: $97,500/year
This is what a W2 job would need to pay to match (includes benefits value)
Where Your Money Goes
Take-Home Pay $75,000 63.6%
Taxes $29,500 25.0%
Retirement $7,500 6.4%
Business Expenses $6,000 5.1%
Total Gross $118,000 100%
Why This Matters

Most freelancers undercharge because they compare their rate to a W2 salary directly. But as a freelancer, you're responsible for:

  • Self-employment taxes - You pay both employer and employee portions (15.3%)
  • Health insurance - No employer subsidy
  • Retirement - No 401k match
  • Unpaid time off - Vacation, sick days, holidays
  • Business expenses - Software, equipment, insurance
  • Non-billable hours - Marketing, admin, invoicing

This calculator accounts for all of these factors to show you what you actually need to charge.

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