Freelance Rate Calculator
Enter your desired annual income, the number of billable hours you can realistically work per week, the number of working weeks per year (accounting for vacation and sick time), and your estimated annual business expenses — the calculator gives you the hourly and daily rate you need to charge to hit your income target.
Most freelancers undercharge because they base their rate on their old salary without accounting for self-employment taxes, health insurance, equipment, software, unbillable administrative time, and vacation. This calculator forces you to factor in expenses and realistic billable hours so your rate actually covers your costs and goals.
The formula is: Hourly Rate = (Annual Income Goal + Annual Expenses) / (Billable Hours per Week x Working Weeks per Year). The daily rate assumes an 8-hour day.
By The Paper Room Editorial Team — Calculator Tools
Frequently asked questions
How many billable hours should I estimate per week?▼
Most freelancers can realistically bill 20-30 hours per week. The rest is spent on admin, marketing, invoicing, learning, and unbillable communication. If you are just starting, estimate 20 hours to be safe. Experienced freelancers with steady clients may bill 30-35.
What expenses should I include?▼
Include self-employment taxes (roughly 15% in the US), health insurance premiums, retirement contributions, software subscriptions, equipment, coworking space or home office costs, professional development, accounting fees, and any other business expenses.
How many working weeks per year is realistic?▼
48 weeks is common — it accounts for 2 weeks of vacation and 2 weeks of holidays or sick time. Some freelancers use 46 or 50 depending on their situation. Do not use 52 unless you genuinely plan to work every week of the year.