How to calculate freelance rate
Rate = (income ÷ (1 − tax rate) + expenses) ÷ (billable hours × weeks)
Worked example. Minimum hourly rate: $100.12.
Example inputs — Desired yearly take-home income: $75,000; Yearly business expenses: $8,000; Tax rate incl. self-employment (%): 30; Billable hours per week: 25; Working weeks per year: 46. Starting values are illustrative.
From George Guju, founder of Calculyn · Educational calculator guidance, not professional advice.
How it works
Freelancers pay their own taxes and expenses and can't bill every hour. This grosses up your income goal for taxes, adds expenses, and spreads it over your billable hours.
Assumptions & limitations
- Results are rounded for display.
Formula and assumptions reviewed October 2026 by the Calculyn team. How we build our calculators
Frequently asked questions
Why fewer billable hours than I work?
Admin, sales, invoicing and learning take real time. Most freelancers bill 50–70% of hours worked.