Calculator
Enter the amount you want to actually keep after taxes and business expenses.
Advanced cost settings
Business costs include software, insurance, equipment, coworking, marketing, and professional development. Profit margin is what you set aside for slow months and reinvestment.
Rate breakdown
Why freelancers undercharge
Most freelancers set their rate by dividing their old salaried income by 2,080 hours. That's a mistake. As a freelancer, you're paying both the employee and employer side of taxes, covering your own benefits, and — most importantly — you only have a fraction of your week available as billable hours. Admin work, sales, invoicing, and learning eat up 40-60% of a typical freelance week.
Industry rate benchmarks (2026)
| Industry | Junior | Mid | Senior |
|---|---|---|---|
| Design & branding | $40–65 | $65–110 | $110–200 |
| Development | $50–80 | $80–140 | $140–250 |
| Writing & copy | $35–60 | $60–100 | $100–180 |
| Marketing & SEO | $45–75 | $75–130 | $130–220 |
| Consulting & strategy | $60–100 | $100–180 | $180–400 |
| Video & motion | $50–85 | $85–150 | $150–280 |
| Photography | $40–70 | $70–120 | $120–250 |
Rates in USD. Senior rates assume 5+ years of specialized experience and a portfolio of high-value clients.
The formula
- Billable hours per year: Billable hours/week × (52 − weeks off)
- Gross needed: (Target income ÷ (1 − tax rate)) + business costs
- With margin: Gross needed × (1 + profit margin)
- Hourly rate: Total gross needed ÷ billable hours per year
Frequently asked questions
How many billable hours can a freelancer realistically work?
Most full-time freelancers bill 20–30 hours per week, not 40. The rest goes to admin, marketing, invoicing, learning, and email. If you're just starting, assume 20 billable hours per week until you have a steady pipeline of clients.
Should I charge hourly, daily, or per project?
All three have a place. Hourly is best for open-ended work where scope is unclear. Daily rates suit workshops, on-site work, and consulting. Project pricing works best when you have enough experience to estimate time accurately — it rewards efficiency.
What if my rate is higher than the market?
The calculator gives you a floor, not a ceiling. If your calculated rate is above what the market pays, either (a) reduce costs, (b) increase billable hours, (c) specialize in a higher-value niche, or (d) accept a lower target income. Never lower your rate below your break-even point.
How often should I raise my rate?
Once a year is a good minimum. Raise rates 5–15% annually, and more if you've added a new skill, niche, or portfolio piece that clearly increases your value. Existing clients can be given a 60-day notice; new clients pay the new rate immediately.
Do I need to add profit on top of my costs?
Yes. Profit margin is your buffer for slow months, sick days, equipment failure, and reinvestment in your business. Aim for at least 20%. Some freelancers target 30–40% to build a real business rather than just replacing a salary.