# Freelance Hourly Rate Calculator

> Freelance hourly rate calculator: set a rate covering expenses, taxes, billable hours, and target income so freelance work actually pays. Free, no signup.

- **Canonical URL:** https://boringtoolskit.com/freelance-hourly-rate-calculator/
- **Category:** Seller & Business
- **Evidence level:** authored-methodology
- **Reviewed:** August 2026
- **Last verified:** 2026-10-12
- **Privacy:** Inputs and results stay in this browser unless the page clearly labels an external request.

## How it works

Minimum rate = (target income + business expenses) / (1 - tax rate) / billable hours.

## Worked example

$75,000 target income plus $12,000 expenses at a 25% tax rate and 966 billable hours (35 hrs x 46 weeks): $112,000 revenue needed, a $115.94 minimum rate, price at $120/hour.

## Assumptions

- Billable hours are usually lower than total working hours because admin, sales, and learning time are unpaid.
- Taxes, insurance, software, hardware, sick time, and retirement savings should be included.
- Market rates and client value still matter after calculating your floor.

## Common questions

### Why is my freelance rate higher than my old salary hourly rate?

Freelancers must cover unpaid time, benefits, taxes, overhead, and business risk.

### Should I charge hourly or project-based?

Use hourly as a floor, then consider project pricing when value and scope are clear.

### What tools pair with this?

Use invoice, quote, payment-fee, and profit-margin tools to check the full workflow.

## Related tools

- /quote-estimate-generator/
- /invoice-gen/
- /small-business-tools/

## Sources

- [Calculation methodology and verification standard](/methodology/)

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*Local planning estimate. Verify current terms, rates, and policies before acting.*