Why does the calculator ask for net income instead of gross?

Most people know what they want to take home, not what their gross should be. We work backwards: from your target net, we add taxes and expenses to find the gross you need to charge.

What counts as billable hours per week?

Only the hours you actually invoice clients — not time on admin, sales, learning, or proposals. For most freelancers this is 60–75% of their working hours. A 40-hour week at 75% utilization equals 30 billable hours.

Should I include self-employment tax in the tax rate?

Yes. If self-employed in the US, add income tax plus self-employment tax (15.3%). A combined 35–40% is realistic for many US freelancers earning $60k–$100k.

What goes into annual expenses?

Everything you spend to run your business: software subscriptions, hardware, co-working space, professional development, accounting fees, and any work-related costs.

Why is my hourly rate higher than I expected?

Because you do not bill every hour you work. Admin, business development, and sick days do not get invoiced. Your rate has to cover your full income from only the hours clients actually pay for.

Is my data saved anywhere?

No. All calculations happen in your browser. Nothing is sent to our servers.

What is a good hourly rate for a freelancer?

A good freelance hourly rate is one that covers your net income goal, taxes, and business expenses while staying competitive in your market. In the US, rates typically range from $50–$100/hr for junior freelancers and $100–$300/hr or more for senior specialists in development, design, consulting, and marketing. The right rate depends on your skills, location, niche, and the value you deliver — not industry averages alone.

How do I calculate my minimum viable hourly rate?

The formula is: (Target net income + Business expenses) ÷ (1 − Tax rate) = Required gross revenue. Then divide gross revenue by your annual billable hours (working weeks × billable hours per week). The result is your minimum viable rate — charge below this and you will not hit your income goal.

Should freelancers charge different rates for different clients?

Yes, many experienced freelancers do. Rates can vary by project complexity, client budget, industry, and urgency. A rush project or a large corporate client often warrants a premium. Your calculated rate from this tool is the floor — your market rate can and should be higher based on perceived value.

How often should I raise my hourly rate?

Most freelancers raise rates annually or when starting work with a new client. A common approach: increase by 5–10% per year for existing clients and set a higher new-client rate immediately. If you are fully booked, that is usually a clear signal your rate is too low.

Hourly Rate Calculator

What Should You
Charge Per Hour?

Start with what you want to take home. Add taxes and expenses. The calculator tells you the exact rate you need to charge — no guesswork.

Currency

Income & Tax

Target net annual incomewhat you take home

$60k

Income tax rateinclude all taxes

25%

Annual business expensessoftware, tools, overhead

$6k

Working Time

Vacation weeks per year

4 weeks

Billable hours per weekhours clients pay for

30 hrs

Hours per dayused for daily rate

8 hrs

Your hourly rate

$61/hr

Per day

$489

Per month

$7k

gross

Per year

$88k

gross

Revenue breakdown

Net income68%

$60,000

Taxes25%

$22,000

Expenses7%

$6,000

What this means

Billable hours / year1,440

40-hour project$2,440

Monthly retainer$7,924

10-hour audit$610

Sanity check: If your rate feels too high, it usually means your billable hours estimate is too optimistic — most freelancers actually bill 20–30 hrs/week.

Common questions

How the formula works

The calculation has two steps. First, work out the gross revenue you need to generate — the total you must invoice clients before tax:

Gross = (Net income + Expenses) ÷ (1 − Tax rate)

For example: a $60,000 net target with 25% tax and $6,000 expenses gives a gross of ($60,000 + $6,000) ÷ 0.75 = $88,000 required revenue.

Second, divide gross revenue by your annual billable hours — not total working hours:

Hourly rate = Gross ÷ (Working weeks × Billable hours/week)

At 30 billable hours/week for 48 weeks: $88,000 ÷ 1,440 = $61/hr. That is your floor. Your market rate — based on skill, demand, and perceived value — will typically sit above it.

Typical freelance rates by profession

US market benchmarks (2025). Your rate should reflect the formula above — treat these as context, not targets.

ProfessionJuniorMid-levelSenior

Web Developer$50–80$80–140$140–250

Mobile Developer$60–90$90–160$160–300

UX/UI Designer$40–70$70–120$120–200

Graphic Designer$35–60$60–95$95–150

Copywriter$35–60$60–100$100–175

SEO Specialist$40–70$70–120$120–200

Paid Ads Manager$50–80$80–140$140–250

Data Analyst$55–90$90–150$150–250

Business Consultant$75–125$125–200$200–400

Finance Consultant$70–110$110–180$180–350

HR Consultant$55–85$85–135$135–225

Video Editor$35–60$60–100$100–175

Sources: Upwork, Toptal, Glassdoor freelance surveys, Bureau of Labor Statistics (2024–2025). Rates vary by location, specialization, portfolio strength, and client type.

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What Should YouCharge Per Hour?

Common questions

How the formula works

Typical freelance rates by profession

Related free tools

What Should You
Charge Per Hour?