Freelance Minimum Rate Calculator
Plan a sustainable freelance rate by combining your take-home income goal, yearly expenses, tax load, and the number of hours you can actually invoice after time off and admin work.
Examples
- $85,000 take-home goal, $18,000 expenses, 28% tax, 22 billable hours/week, 4 vacation weeks, 4 admin weeks ⇒ Minimum rate: $94.33/hour ($754.68/day). Billable hours/year: 968. Pre-tax revenue target: $91,351.35 ($7,612.61/month).
- $60,000 take-home goal, $10,000 expenses, 25% tax, 25 billable hours/week, 3 vacation weeks, 3 admin weeks ⇒ Minimum rate: $70.18/hour ($561.47/day). Billable hours/year: 996. Pre-tax revenue target: $69,916.67 ($5,826.39/month).
FAQ
Should I include health insurance in expenses?
Yes. Any recurring cost your business must cover—health insurance, software, office rent—belongs in annual expenses so the rate compensates for it.
What if I work in billable projects instead of hours?
Use the hourly result as a floor when pricing project fees. Multiply the rate by the estimated hours plus a buffer for risk to ensure profitability.
How does the tax rate input work?
Enter your estimated combined income and self-employment tax percentage. The calculator increases the gross revenue target so the net after taxes matches your take-home goal.
Additional Information
- Effective weeks available equals 52 minus vacation, sick, and admin weeks that are not billable.
- Gross revenue required divides by (1 − tax rate) to cover income tax and self-employment obligations.
- Day rate assumes an 8-hour billable day—adjust if your engagements bundle hours differently.