Minimum Hourly Rate
$71/hr
Daily Rate (8h)
$568/day
Weekly Rate
$2,131/wk
How do I calculate my freelance hourly rate?
Start with your target annual income, add all business expenses (software, equipment, insurance, office costs), add estimated self-employment tax (~15.3% on 92.35% of income), then divide the total by your expected billable hours. A common mistake is forgetting to account for taxes and overhead, which can leave you significantly underpaid.
What overhead should I include in my rate?
Include health insurance premiums, retirement contributions, business insurance, software subscriptions, equipment depreciation, office/coworking costs, professional development, accounting fees, and a reserve for non-billable time (marketing, admin, etc.). Typically, overhead adds 25-40% on top of your desired take-home pay.
How many billable hours per week is realistic?
Most freelancers bill 20-30 hours per week, not 40. The remaining time is spent on marketing, admin, client communications, invoicing, and professional development. A common range is 25-30 hours if you are established, or 15-20 hours if you are still building your client base.
Practical Estimate: This calculator provides a minimum rate based on your financial needs. Consider market rates in your industry and experience level when setting your final rate.
Disclaimer: This calculator provides estimates based on current IRS rates and thresholds for the 2025 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your filing status, state of residence, deductions, and individual circumstances. Always consult a qualified tax professional or CPA before making financial decisions. Read our terms
This calculator uses official rates and thresholds from:
- IRS Publication 334 — Tax Guide for Small Business
- IRS Schedule SE — Self-Employment Tax Instructions
- IRS Publication 535 — Business Expenses
Last verified: March 2026 · Tax year 2025. Results are indicative — consult a qualified accountant for personalised advice.