Freelance Hourly Rate Calculator
Find your minimum hourly rate in 3 steps — based on your target net income, estimated taxes, and business overhead. Free, no sign-up.
Goal & Setup
What you want left after taxes and all deductions.
Full-time: you cover all your own insurance and retirement costs — include them in your tax rate or annual overhead.
30% covers income tax. If health insurance & retirement should be included here (instead of in overhead), 35–45% is more realistic.
Annual Costs & Working Time
Select your estimated annual overhead (tools, insurance, etc.)
Sales, admin, accounting, learning, etc.
Your Minimum Hourly Rate
The calculation deducts a flat 10 public holidays per year.
How to calculate your freelance hourly rate
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Enter your target net income
Choose the net income you need per year or per month after taxes. Solo freelancers in high-cost cities typically need $5,000–7,000/month net; in lower-cost regions $3,000–5,000 is often sufficient. Be honest about your actual living expenses, not aspirational numbers.
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Add your tax rate and social security
In the US, freelancers typically owe 25–35 % combined federal + state + self-employment tax. In Europe, total tax + social security usually runs 30–45 %. Use the rate that matches your situation — your CPA or tax advisor can confirm.
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Add monthly business expenses
Include all recurring business costs: software subscriptions, coworking space, professional insurance, accounting tools, education, internet and phone. Realistic range for solo freelancers: $300–800/month depending on your setup.
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Add a buffer for vacation, sickness and slow months
Freelancers don't get paid for vacation or sick days. Plan at least 4 weeks vacation and 2 weeks sick buffer per year, plus 10–15 % buffer for slow months when client work is thin.
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Divide by billable hours, not work hours
Most freelancers vastly overestimate billable hours. Realistic is 800–1,200 billable hours per year for solo freelancers — 30–50 % of total work hours go to client acquisition, admin, accounting and breaks. Divide your annual cost total by billable hours to get your minimum hourly rate.
Freelance hourly rates in 2026, by field
Typical ranges for experienced solo freelancers in the US market. Beginners usually land 20–30 % below these ranges, niche specialists above.
| Field | Typical hourly rate |
|---|---|
| Software development | $80–150 |
| IT consulting / architecture | $100–180 |
| Consulting / project management | $90–160 |
| Marketing / growth | $70–130 |
| Design (UI/UX, brand) | $65–120 |
| Writing / content | $50–100 |
| Virtual assistance / ops | $30–60 |
Rates vary heavily by region and client type — enterprise clients pay 1.5–2× what small businesses pay for the same work.
Frequently asked questions
What should I charge as a freelancer in 2026?
It depends on your field and market, but as a floor: take the net income you need, add taxes (25–40 %), business costs and a slow-month buffer, then divide by 800–1,200 billable hours. For experienced freelancers in the US that typically lands between $60 and $150/hour — developers and consultants at the upper end, writers and virtual assistants lower. Anything under ~$40/hour rarely sustains full-time freelancing once taxes and health insurance are paid.
Why does my freelance rate need to be so much higher than my old salary per hour?
Because four costs are invisible inside a salary: the employer's share of payroll taxes and benefits, paid vacation and sick days, 30–50 % non-billable time (sales, admin, learning), and your business expenses. As a rule of thumb, a sustainable freelance rate is 2–3× the hourly equivalent of a comparable salary.
Hourly rate or day rate — which should I quote?
A day rate (typically 7–8× your hourly rate) works well for longer engagements and signals seniority; hourly works better for small, scoped tasks. Many freelancers quote day rates to agencies and enterprises, and fixed project prices to small businesses — the calculator gives you the hourly floor either way.
How many hours can I realistically bill per year?
Far fewer than you work: from roughly 1,760 gross work hours per year, most solo freelancers end up with 800–1,200 billable hours after client acquisition, admin, accounting, learning and gaps between projects. That is exactly why this calculator divides by billable hours, not work hours.
Does the calculator handle VAT / sales tax?
No — deliberately. VAT/GST and US sales tax are pass-through amounts you collect on top of your rate and forward to the tax authority. Your rate calculation is based on your income tax and costs; the pass-through never touches it.