Freelance Rate Calculator
Converting a salary expectation into a freelance hourly rate is more than dividing by hours — self-employment tax, expenses, and unpaid time all take a cut. This calculator works backward from the income you want.
How to use this calculator
- Enter target income after taxes.
- Enter billable hours per week.
- Enter working weeks per year.
- Enter business expenses as % of gross.
- Enter filing status.
- Your results appear instantly below and update as you change the numbers.
How this calculator works
The calculator solves for the gross income whose after-tax result equals your target: it subtracts business expenses (a share of gross), self-employment tax of 15.3% on 92.35% of profit, and 2026 federal income tax after the half-SE-tax deduction and standard deduction. The required rate is that gross divided by your billable hours for the year.
Frequently asked questions
Why is my freelance rate so much higher than my old salary?
Because a W-2 salary hides costs you now pay: 7.65% extra payroll tax, benefits, paid time off, equipment, and the hours you spend on admin and marketing that you cannot bill. A general rule of thumb is to multiply your salary-equivalent hourly rate by 1.5 to 2.5.
How many hours can I really bill?
Fewer than you think. A 40-hour work week with proposals, bookkeeping, and networking typically leaves 25 to 32 billable hours. That is why the calculator asks for billable hours and working weeks separately — unpaid time is the silent killer of freelance pricing.
Does this include state income tax?
No — it covers federal income tax and self-employment tax. Add your state rate separately if you live in an income-tax state; the result will understate the rate you need.
Disclaimer: Results are estimates for general information only and do not constitute financial, tax, or legal advice. Figures reflect 2026 rules and may change. Always confirm current limits and consult a qualified professional before making decisions. Official figures: IRS.gov · 2026 limits per IRS tax inflation adjustments.