Tiny Toolkit

Freelance Rate Calculator

Find the minimum hourly rate you need to charge to hit your income goal after taxes, overhead, and non-billable time.

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Frequently Asked Questions

Why is my minimum hourly rate higher than I expected?
Most people underestimate non-billable time: admin work, sales, proposal writing, and gaps between projects. If you bill 25 hours per week instead of 40, your effective rate must be much higher to cover the same annual income. Overhead and self-employment taxes (typically 25 to 35% for US freelancers) add further to the required gross.
What should I include in overhead and expenses?
Common freelance expenses include: software subscriptions, home office costs, professional development, health insurance premiums (if self-paid), accounting and legal fees, equipment depreciation, and business insurance. Total these annually before running the calculation.
What tax rate should I use?
US freelancers typically owe self-employment tax (15.3% on the first $160,200 in 2024) plus federal and state income taxes. A combined effective rate of 25 to 35% is a common planning assumption for those earning $50,000 to $150,000 annually. Consult a tax advisor for your specific situation.
Should my actual rate be higher than the minimum?
Yes. The calculator shows the floor, not the market rate. Your actual rate should reflect your expertise, market demand, client value, and project risk. Many experienced freelancers charge 1.5 to 3 times the minimum to account for inconsistent workloads and business growth.

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