Calculate Your True Hourly Rate
Stop guessing. Factor in your target take-home pay, overhead, taxes, and actual billable hours to discover exactly what you need to charge.
Your Variables
What you actually want to put in your pocket after taxes and expenses.
Software, hardware, internet, insurance, marketing, office space.
Self-employment + income tax rate. Usually 20-35%.
Don't include admin/marketing time.
Vacation, holidays, and sick days.
Your Minimum Target Rate
Where your money goes (Gross)
Calculations are estimates. Consult a tax professional.
Why traditional math breaks freelancers
Most freelancers calculate their rate by taking a corporate salary and dividing it by 2080 (40 hours * 52 weeks). This is a massive mistake.
You are a business. You wear the hats of marketing, sales, accounting, and execution. If you work 40 hours a week, typically only 20-25 of those are actually billable to a client.
- You must charge for unbillable time.
- You must build in paid time off.
- You absorb 100% of self-employment tax.
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Salary vs. Freelance Comparison
Quitting your full-time job? Calculate exactly what you need to charge as a freelancer to maintain the exact same standard of living (including your hidden benefits).
Current Corporate Job
Total True Corporate Value:
$100,000
Freelance Equivalent
To maintain that exact lifestyle as a freelancer (accounting for higher self-employment taxes, paying your own insurance, and non-billable time), you need:
Equivalent Freelance Gross Revenue
$0
Required Hourly Rate
$0
/ hr
*Assuming standard 25 billable hours/week and 4 weeks off.
Freelancer Tool Stack
The software and platforms we recommend to run your independent business efficiently, track your finances, and protect your margins.
Invoicing & Accounting
Automate your proposals, contracts, and payment tracking. Never chase an invoice manually again.
View recommendationProject Management
Keep client deliverables organized. Essential for preventing scope creep and unbillable chaos.
View recommendationBusiness Banking
Separate your personal and business finances instantly with zero-fee digital business accounts.
View recommendation