💼 Freelance Rate Calculator
Calculate your ideal hourly rate, project pricing, and annual income goals
💰
Pricing Your Work
Typical Billable %
50-70%
Tax Reserve
25-35%
Profit Margin
15-30%
Freelance Rate Formulas
📐 Understanding Freelance Pricing
Hourly Rate Formula
Accounts for taxes, expenses, profit margin, and non-billable time.
Project Rate Formula
Multiply hourly rate by hours, add complexity and revision buffers.
Salary Conversion
Add benefits value and self-employment tax to match total compensation.
💵 Freelance Rate Benchmarks by Industry
| Industry/Skill | Entry Level | Mid-Level | Expert |
|---|---|---|---|
| Web Development | $30-50/hr | $75-125/hr | $150-250/hr |
| Graphic Design | $25-40/hr | $50-85/hr | $100-200/hr |
| Content Writing | $20-35/hr | $50-80/hr | $100-175/hr |
| Marketing/SEO | $35-55/hr | $75-125/hr | $150-300/hr |
| Video/Animation | $40-65/hr | $85-150/hr | $200-400/hr |
| Consulting | $75-125/hr | $150-250/hr | $300-500/hr |
📊 Freelance Expense Categories
| Category | Examples | Typical Annual Cost |
|---|---|---|
| Software/Tools | Adobe CC, Slack, project management | $1,000 - $3,000 |
| Equipment | Computer, desk, monitors | $500 - $2,000 (amortized) |
| Insurance | Liability, health, equipment | $2,000 - $8,000 |
| Marketing | Website, ads, networking | $500 - $3,000 |
| Professional Services | Accountant, legal, coaching | $1,000 - $5,000 |
| Workspace | Home office, coworking | $0 - $6,000 |
❓ Frequently Asked Questions
Q: How do I calculate my freelance hourly rate?
Hourly Rate = (Target Annual Income + Expenses + Taxes + Profit) ÷ Billable Hours.
Account for only 50-70% of your hours being billable since the rest goes to admin, marketing, and
non-client work.
Q: What percentage of hours are actually billable?
Typically 50-70% of your working hours are billable. The rest goes to marketing,
admin, invoicing, client acquisition, learning, and managing your business. New freelancers may be
as low as 40% billable.
Q: How much should I charge compared to a salary?
A common rule: charge 2-3x what an equivalent hourly salary would be. This
accounts for self-employment taxes (15.3% in US), no benefits, business expenses, and non-billable
time. For a $75K salary, aim for $72-108/hour.
Q: Should I charge hourly or project-based?
Project-based is often better: clients prefer fixed costs, and you can earn more
as you get faster. Hourly works for ongoing work, uncertain scopes, or when starting out. Always
build in a revision buffer (15-25%) for project rates.
Q: How do I price rush or urgent projects?
Add a rush fee multiplier: 1.5x for tight deadlines, 2x for next-day, and 2.5-3x
for same-day work. Rush work disrupts your schedule and may require overtime. Communicate this
policy upfront to set expectations.