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💼 What Should I Charge as a Freelancer?

Your real minimum viable rate — after taxes, benefits, downtime and business costs.

💼

Freelancer Rate Calculator

What you need to charge to actually make it work

Your Numbers
$
hr
5hrs50hrs
wk
$
Software, insurance, equipment, marketing
The Numbers
Minimum Viable Hourly Rate
Billable Hours Per Year
Gross Revenue Needed
Tax + Self-Employment (est. 30%)
Annual Business Expenses
Our Recommendation
Calculating...

Scenario Analysis

40hrs Billable
If you can fill a full working week with billable work
Your Plan
Based on your numbers above
15hrs Billable
If client work is harder to fill than expected

Personalized Insights

Recommended Next Steps

Why Freelancers Consistently Undercharge

The most common mistake freelancers make is comparing their hourly rate to an employee's hourly wage equivalent without accounting for the difference: employees get paid holidays, sick leave, employer National Insurance/payroll taxes, health insurance contributions, and don't need to spend time on admin, marketing, or unpaid proposal work.

A realistic billable percentage is 50-65% of working hours for most freelancers — the rest goes to admin, business development, invoicing, and professional development. Someone working 40 hours a week might bill 20-25 hours. Your rate must cover all the non-billable time too.

Self-employment taxes add roughly 15% on top of regular income tax in the US (or equivalent in other countries) — often forgotten when setting rates because it doesn't appear as a paycheck deduction in the same obvious way employer payroll taxes do.

01
Enter Your Goals
Target income, billable hours and business costs.
02
See Your Floor Rate
The minimum you must charge to hit your target.
03
Compare Scenarios
How rate changes with different billable hours.
04
Set Your Rate
Use this as your floor, not your ceiling.

Frequently Asked Questions

Should I charge by the hour or by project?
Project-based pricing is generally better for experienced freelancers — it rewards efficiency and lets you earn more as you get faster. Use your hourly rate as the underlying calculation, then price the project based on estimated hours with a buffer.
How do I know if my rate is competitive?
Research rates on platforms like Upwork, LinkedIn, and industry salary surveys. But don't set your floor at the market rate — set it based on your real costs, and use market rates to understand your positioning.
What if clients say my rate is too high?
A rate that's too high for some clients is often exactly right for better clients. Competing on price as a freelancer is a race to the bottom — better to find clients who value quality over cheap rates.
Should I charge more for rush work?
Yes — a 25-50% rush premium is standard for same-day or next-day turnarounds that displace other work. Build this into your standard terms upfront rather than trying to negotiate it per-project.

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