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How to calculate your freelance hourly rate
Most freelancers undercharge — not because they don’t know their worth, but because they don’t account for all the hidden costs of self-employment. This calculator helps you find the rate that actually covers your life.
The freelance rate formula
Your minimum hourly rate = (Desired income + Taxes + Expenses) ÷ Billable hours per year. Always add a profit margin on top to cover slow months, equipment replacement, and business growth.
Why most freelancers undercharge
The biggest mistake is comparing your hourly rate to an employee’s salary. As a freelancer, you pay both sides of payroll tax, you get no paid vacation, no sick leave, no employer healthcare. Your effective cost is 30-40% higher than an equivalent employee salary.
What counts as a billable hour?
Not everything you do is billable. Admin work, invoicing, sales calls, marketing, professional development — none of this gets billed to clients. Most freelancers realistically bill 5-7 hours per 8-hour day.
What is a good freelance hourly rate in 2026?
It depends on your field and experience. Junior freelancers typically charge $25-50/hr, mid-level $50-100/hr, and senior specialists $100-250/hr. The right rate is whatever covers your costs plus a healthy profit margin.
Should I charge by the hour or by project?
Project pricing is generally better once you have experience. It lets you earn more when you work efficiently, and clients prefer predictable costs. Use your hourly rate as a basis for estimating project costs.
How often should I raise my freelance rate?
At minimum once a year to keep up with inflation. Ideally 10-20% annually as you gain experience. New clients should always pay your current rate — never discount for familiarity.
What expenses should freelancers include in their rate?
Software subscriptions, hardware depreciation, internet, phone, professional development, accounting fees, marketing, and any workspace costs. Most freelancers underestimate this by 30-50%.