Freelance Hourly Rate Calculator – Compute Your Billable Contractor Rate
Many new freelancers set hourly rates only comparing full‑time employee wages, and forget self‑employment taxes, unpaid vacation, and non‑billable admin work. This calculator works out your realistic billable hourly rate based on target yearly take‑home income, annual billable working hours and tax percentage for independent contractors.
Tool Features
- Calculates billable hourly rate for desired after‑tax annual income
- Accounts for self‑employment tax burden for independent contractors
- Uses realistic billable hour input for admin, marketing and vacation time
- Great for writers, designers, developers, consultants and creative freelancers
- Free business‑planning tool for side‑hustle and full‑time freelance work
Common Usage Scenarios
- New freelancer figuring out baseline client pricing
- Existing contractors reviewing and adjusting service rates
- Comparing full‑time job offers versus freelance earning potential
- Setting project baseline pricing based on hourly target income
Frequently Asked Questions
Q: Why not use 2080 hours for freelance annual hours?
A: 2080 is standard for full‑time employees. Freelancers spend many hours on proposals, emails and marketing which cannot be billed to clients, so real billable hours are far lower.
Q: What self‑employment tax percentage should I enter?
A: US independent contractors commonly use 15‑30% for combined income and self‑employment taxes.