Enter your income goal to see your rate instantly. Add expenses and benefits to sharpen the number.
Start with a profile
Essential inputs
Desired personal incomebefore federal & state income tax
$
Example: to replace a $75,000 salary, enter 75,000. We add self-employment tax and your business costs on top to calculate your required rate.
Billable hoursper week
hrs/wk
Exclude admin, marketing, and email time.
Weeks workedper year
wks/yr
Costs
Business expensesper year
$
Health insuranceper month
$
Retirement% of income
%
Tax estimate
SE tax ratestandard ≈ 14.1%
%
SE tax covers Social Security & Medicare (15.3% × 92.35% of net earnings). Standard effective rate is ~14.1%. Federal and state income tax apply separately and are not modeled here.
Safety buffer
Buffer percentageadded to base rate
%
Covers slow months, scope creep, and late invoices. Raise it for project-based or seasonal work.
Recommended rate
$86/hr
Includes 20% buffer · 25 billable hrs/wk × 48 weeks
At 25 hrs/wk, this means roughly $2,139/week in client work
Floor
$71/hr
No buffer — absolute minimum
★ Recommended
$86/hr
+20% buffer applied
Stretch
$103/hr
For high-demand or complex work
A basic earnings ÷ hours calculation would suggest ~$36/hr. Accounting for SE tax, costs, and your 20% buffer, you need ~$86/hr — $50 more per hour. That gap is why most freelancers undercharge.
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Most freelancers undercharge because they calculate their rate wrong — dividing a salary target by 2,080 hours without accounting for taxes, benefits, or realistic billable time. This calculator fixes that.
Frequently asked questions
Why is my recommended rate higher than expected?
As a freelancer you pay both sides of Social Security and Medicare — roughly 14% on top of your earnings. You also cover health insurance, retirement, and business costs an employer would normally fund. And you won't bill 40 hours every week. Once all of this is factored in, a $75,000 income goal typically requires $85–110/hr depending on your situation.
What is a realistic number of billable hours per week?
20–25 hours is realistic for most full-time freelancers once you account for admin, proposals, invoicing, professional development, and gaps between projects. 40 billable hours every week is possible in short bursts but unsustainable as a baseline for rate-setting.
What does the safety buffer cover?
Slow months, scope creep you don't bill for, late-paying clients, and unpaid revision cycles. The default 20% is a reasonable starting point. Raise it if your work is highly project-based, seasonal, or if clients frequently push back on invoices.
Does this calculator include income tax?
This calculator adds self-employment tax on top of your income goal — the Social Security and Medicare taxes most employed people don't pay directly. It does not model federal or state income tax, which will take an additional 15–35% depending on your income and location. Set your income goal with that in mind. A full income tax estimator is a planned future tool.
Which rate should I quote clients?
Use the recommended rate as your standard quote and the floor as your absolute minimum. Your rate should also reflect your experience, the value you deliver, and market expectations. Many experienced freelancers charge well above the recommended calculation, particularly in specialized fields.
Related tools
Next: estimate your quarterly self-employment tax, or find out what you actually keep per project.
Estimates only. SE tax uses the standard IRS formula (15.3% × 92.35% of net earnings). Does not model federal income tax, state income tax, the SE tax deduction, QBI deduction, or income phase-outs. Consult a qualified tax professional for your specific situation.