Not sure what to charge as a freelancer? Our free Freelance Hourly Rate Calculator helps you find the minimum hourly rate you need to cover your income goals, business expenses, self-employment taxes, and profit margin — so you never undercharge again. Enter your numbers below to get a personalized rate recommendation.
Your Minimum Hourly Rate
per hour to meet your income goals
| Desired annual income | |
| + Business expenses | |
| + Self-employment tax (~15.3%) | |
| + Profit margin | |
| = Total revenue needed | |
| ÷ Billable hours per year |
Suggested rate range:
The low end covers your minimum needs. The high end includes a buffer for slow months, late payments, and unexpected expenses.
How This Calculator Works
Setting the right hourly rate is the single most important financial decision a freelancer makes. Charge too little, and you’ll burn out working long hours without meeting your income goals. Charge too much without the skills or portfolio to back it up, and clients look elsewhere. This calculator takes the guesswork out of the equation.
Key Factors That Affect Your Freelance Rate
**Your industry and specialization** play the largest role in what clients will pay. A freelance software developer or UX designer typically commands $75–$200/hour, while a freelance writer might charge $30–$100/hour. The more specialized your skills, the higher you can charge.
**Geographic location** matters even for remote workers. Clients in New York, San Francisco, and London expect higher rates but also pay more. If you’re in a lower cost-of-living area working for clients in high-cost cities, you can often find a sweet spot.
**Experience and portfolio strength** justify premium pricing. A freelancer with 10 years of experience and case studies demonstrating measurable results can charge 2–5x more than someone just starting out.
**Billable hours are not work hours.** This is the mistake most new freelancers make. If you plan for 40 billable hours per week but only actually bill 25, you’ve underpriced yourself by 37%. Be realistic — most freelancers bill 60–70% of their working time.
**Seasonality and market demand** fluctuate throughout the year. Many freelancers see slowdowns in summer and around holidays. Your rate needs to account for earning less during those periods.
Frequently Asked Questions
### What is a good hourly rate for a freelancer?
A “good” freelance rate varies dramatically by industry and experience. In the US, rates typically range from $30/hour for entry-level general services to $200+/hour for specialized consulting. Use the calculator above to find what’s right for your specific situation — the right rate covers your costs, taxes, and profit goals while remaining competitive in your market.
### How many hours should I bill per week?
Most successful freelancers bill 25–35 hours per week out of a 40-hour work week. The remaining time goes to essential non-billable work: client acquisition, marketing, invoicing, admin, and professional development. New freelancers should plan for even fewer billable hours as they build their client base.
### Should I charge hourly or per project?
Both approaches have merits. Hourly billing works well for ongoing work with undefined scope. Project-based pricing is often more profitable because you can earn more as you become faster. Many experienced freelancers prefer project pricing — our Freelance Project Pricing Calculator can help you set project rates.
### How do I raise my rates with existing clients?
Give clients 30–60 days notice, explain the value you provide, and frame the increase in terms of market rates. A 10–15% annual increase is standard. If you’ve been undercharging, consider a larger one-time adjustment for new projects while honoring current contract rates.
### Do I need to charge more if I’m paying for my own health insurance?
Yes. Health insurance is one of the largest expenses freelancers face — often $300–$800/month for an individual in the US. Add your annual health insurance cost to the “Business Expenses” field in the calculator to make sure your rate covers it.
### What percentage of my time is non-billable?
On average, freelancers spend 30–40% of their working hours on non-billable tasks. This includes proposals, client communication, invoicing, bookkeeping, marketing, networking, and ongoing education. Factor this into your weekly billable hours estimate.
Related Calculators
- – **[Self-Employment Tax Calculator](/self-employment-tax-calculator/)** — See exactly how much you’ll owe in SE taxes
- – **[Freelance Project Pricing Calculator](/freelance-project-pricing-calculator/)** — Convert your hourly rate into project-based quotes
- – **[1099 vs W-2 Comparison Calculator](/1099-vs-w2-calculator/)** — Compare freelance income to traditional employment
- – **[Freelance Break-Even Calculator](/freelance-break-even-calculator/)** — Find out how many hours you need to bill each month
- – **[Quarterly Estimated Tax Calculator](/quarterly-tax-calculator/)** — Calculate your quarterly IRS payments