What is a good freelance hourly rate?

Highly field-dependent. In the US: web/software development $75–$200/hr, design $50–$150/hr, copywriting $60–$150/hr, consulting $100–$400/hr. Match your rate to your specialty, market, and 5+ years experience benchmark — not to junior in-house salaries.

Why is my freelance rate higher than an employee's hourly wage?

Employees don't pay their own employer-side payroll taxes (~7.65% in the US), health insurance, retirement, paid time off, equipment, or downtime. A freelancer earning the equivalent of a $80,000 salary needs to bill closer to $60–$80/hr, not $40/hr.

How many hours per year should I assume are billable?

Most full-time solo freelancers bill 1,000–1,500 hours/year, not 2,000. The other 500–1,000 hours go to sales, admin, learning, sick days, and unpaid revisions. Plan for 25 billable hours/week × 46 weeks = 1,150 hours as a realistic baseline.

Should I include taxes in my rate?

Yes. Set aside 25–35% of every invoice for income tax + self-employment tax (US figures, varies by country). Either build that into the rate or move it to a separate tax account on the day each invoice clears — never spend it.

How do I price project-based work from an hourly rate?

Estimate hours, multiply by your rate, then add a 20–30% buffer for revisions and scope creep. For larger projects, switch to value-based pricing once you understand the client's ROI. Use the Profit Margin Calculator to sanity-check the take-home after subcontractors and fees.

Freelance Hourly Rate Calculator — Free Pricing Tool (2026)

Free freelance hourly rate calculator — find your ideal rate based on costs, desired salary & billable hours. Perfect for freelancers, consultants & agencies.

Last Updated: March 25, 2026

Annual Income Target ($)

Work Weeks / Year

Billable Hours / Week

Annual Expenses ($)

Instant Results

$63.89

Your Hourly Rate

$7667

Monthly Revenue

1440

Annual Hours

How to Use

Enter your target take-home income for the year.
Set your realistic working weeks (subtract holidays, sick days, and onboarding gaps — most full-time freelancers use 46–48).
Enter billable hours per week — usually 20–30, not 40 (admin, sales, and learning aren't billable).
Add annual business expenses (software, insurance, taxes set-aside, fees). Don't forget Stripe or PayPal fees on incoming payments.

Formula Explained

Hourly Rate = (Annual Income Target + Annual Expenses) / (Work Weeks × Billable Hours per Week)

Annual Target: = Take-home income you want to net after expenses
Annual Expenses: = Software, insurance, taxes set-aside, equipment, processing fees
Billable Hours: = Hours actually invoiced — not hours worked

Worked example: Target $80,000 + $12,000 expenses = $92,000 needed. 48 weeks × 30 billable hrs = 1,440 hrs. Rate = $92,000 / 1,440 = $63.89/hr.

Freelance Hourly Rate Calculator — Free Pricing Tool (2026)

How to Use

Formula Explained

References

Frequently Asked Questions