Admin Time
Invoicing, email, bookkeeping, calls, and scheduling are real work even when not billed.
Freelance pricing
Freelance Hourly Rate Calculator
Estimate a freelance hourly rate that supports your target income while covering non-billable time, taxes, business tools, client gaps, insurance, and administrative work.
Freelance Hourly Rate Formula
Planning formula
Freelance hourly rate = target annual income plus expenses plus tax reserve plus risk buffer, divided by annual billable hours.
A freelancer who wants to earn $90,000 may need to charge far more than $43/hr because only a portion of the calendar is billable. Marketing, proposals, bookkeeping, revisions, client management, and learning time all reduce effective hourly earnings.
Costs Freelancers Often Forget
Sales Time
Proposals and discovery calls can take hours before any contract is signed.
Software
Design, coding, writing, accounting, hosting, and research tools add recurring costs.
Taxes
Freelancers need cash reserved for self-employment and income taxes.
Client Gaps
Slow months and delayed payments require margin inside the rate.
Billable Hours Example
If you work 40 hours per week but bill only 25 hours, your visible workweek hides 15 unpaid hours. That difference can turn a rate that looks profitable into one that barely covers operating costs.
This is a rough educational estimate only and is not tax, legal, financial, accounting, or employment advice.
FAQ
What is a good freelance hourly rate?
A good rate covers income goals, taxes, expenses, unpaid time, skill level, client value, and market demand.
Should new freelancers charge less?
A lower starting rate can help win early work, but it still needs to cover basic costs and avoid locking you into unsustainable pricing.