Side Hustle

Freelance Rate Calculator

What should you charge per hour? Get your minimum viable rate — plus income breakdown and market rate benchmarks by specialty.

Desired Monthly Take-Home Income ($) What you want to pocket each month after taxes

Monthly Business Expenses ($) Software, equipment, insurance, home office

Billable Hours per Week Only hours you actually bill — not admin time

Weeks Worked per Year Leave room for vacation & slow months

Estimated Tax Rate (%) Self-employment (~15.3%) + income tax. Total ~28-35% for most

Your Specialty (for market benchmarks)

Minimum Hourly Rate

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Suggested Rate (+25%)

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Required Gross Revenue

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Billable Hours / Year

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How to Set Your Freelance Rate

Most freelancers undercharge because they only think about what they want to earn — not what they need to earn after taxes, expenses, and non-billable time.

Annual Gross Needed = (Monthly Take-Home × 12 ÷ (1 − Tax Rate)) + (Monthly Expenses × 12)
Minimum Rate = Annual Gross Needed ÷ Annual Billable Hours

The Non-Billable Hours Problem

If you work 40 hours per week but only 30 are billable (the rest go to admin, sales, and emails), your rate must cover all 40 hours of your time — not just 30.

Why Add 25%?

The suggested rate adds a 25% buffer for scope creep, slow months, client negotiations, and unexpected expenses. Many freelancers who charge their "minimum" end up making less than they planned.

Should I charge by the hour or by the project?

Project pricing is usually better for clients and for you. Use your hourly rate to estimate projects, then charge a flat fee. This rewards your efficiency and eliminates client anxiety about "the clock."

What is the self-employment tax rate?

Self-employment (SE) tax is 15.3% on your net self-employment income (up to the Social Security wage base). On top of that, you'll owe federal and state income taxes. A combined rate of 28-35% is typical for most US freelancers.

How do I raise my rates without losing clients?

Give existing clients 60-90 days' notice, frame the increase as a reflection of your growing expertise, and raise rates immediately for all new clients. Most clients who value your work will accept a 15-25% annual increase.