Why Freelance Rates Look "High"
An employee earning $70,000 costs their employer far more than $70,000 — payroll taxes, health insurance, retirement match, paid vacation, equipment. As a freelancer, you are the employer. On top of that, only part of your week is billable: admin, marketing, proposals, and invoicing eat hours nobody pays for. That's why a freelancer matching a $34/hour salary often needs to charge $70–100/hour.
What This Calculator Does
It works backwards from your target take-home income: adds your estimated tax burden (income tax plus ~15.3% self-employment tax on net earnings), adds business expenses, then divides by your true billable hours (billable hours/week × working weeks). The result is your break-even floor — your actual price should sit above it.
Rate-Setting Tips
- Most new freelancers overestimate billable hours. 20–25 billable hours in a 40-hour week is typical.
- Price projects, not hours, once you're fast — speed shouldn't cut your income.
- Raise rates with every 2–3 new clients until you start hearing "no" sometimes. Silence means you're too cheap.