GigMath › Freelance Hourly Rate Calculator

Freelance Hourly Rate Calculator

Start with the income you want to take home. We'll add your taxes, business costs, holidays and unbilled admin time, and give you the hourly rate that actually gets you there.

Updated October 2026

Your numbers

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The share of your working hours you can actually charge for. Admin, sales and emails usually take 25–40% of the week.

Extra margin for quiet months, late payments and savings.

Your minimum hourly rate

$0

    Treat this as your floor, not your price. Many freelancers charge more based on value and demand.

    Why freelancers undercharge

    The most common mistake is taking an old salary, dividing it by 2,080 working hours and charging that. As a freelancer you pay your own taxes and business costs, you don't get paid holidays, and a big part of your week goes on work nobody pays for: finding clients, emails, invoices and admin. A rate that ignores this can leave you earning far less than an employee doing the same job.

    How the calculation works

    1. Add tax back on. To take home your target, you need to earn more before tax: income ÷ (1 − tax rate).
    2. Add business costs. Software, equipment, insurance, accounting, internet and platform fees.
    3. Add a buffer for quiet months, late payments and saving for the future.
    4. Count real billable hours. (52 − weeks off) × hours per week × billable %.
    5. Divide the revenue you need by your billable hours.

    Hourly rate = ((Income ÷ (1 − tax) + costs) × (1 + buffer)) ÷ billable hours

    Example: to take home $60,000 with $6,000 of costs, a 25% tax rate, 6 weeks off and 65% billable time, you need about $79 an hour, not the $29 you'd get by dividing $60,000 by 2,080 hours.

    What tax rate should I use?

    Use your best estimate of your total tax as a share of your profit. In the US that means federal income tax, self-employment tax and any state tax. In the UK it's income tax plus Class 4 National Insurance. Our US tax calculator and UK tax calculator show your effective rate, which you can copy straight in here.

    Turn your hourly rate into project prices

    Clients often prefer a fixed price. Estimate the hours, multiply by your rate and add 15–25% for revisions and the unexpected. If you sell on a marketplace, remember the platform fee: use the Upwork or Fiverr calculator to price it in.

    Frequently asked questions

    How do I calculate my freelance hourly rate?

    Add tax, business costs and a buffer to the income you want, then divide by the hours you can realistically bill in a year after holidays and admin time.

    How many billable hours does a freelancer have per year?

    Typically 1,000 to 1,400. A 40-hour week with 6 weeks off and 65% billable time gives about 1,200 billable hours.

    Should freelancers charge more than employees?

    Yes. Freelancers cover their own taxes, benefits, equipment, unpaid time off and unbilled time, so their hourly rate usually needs to be 1.5 to 3 times an equivalent employee's hourly wage.

    Is this rate before or after tax?

    The result is what you charge clients, before tax. It already includes the tax you'll need to pay on your income.

    This calculator gives estimates for planning only. It is not tax, legal or financial advice. Rules and fees change, so check the official source or a qualified professional before making decisions.