Freelance rate
Hourly Rate Calculator
Find the hourly rate you need to charge to take home the income you want, after business expenses and taxes.
Result
Your hourly rate:
How the math works
- Gross revenue = (take-home pay + business expenses) ÷ (1 − tax rate). Taxes are charged on the gross, not on the take-home.
- Hourly rate = gross revenue ÷ billable hours.
- At 30 billable hours a week for 48 weeks you bill 1,440 hours a year, not 2,080.
- At a 25% effective rate, every $100 of take-home pay needs $133.33 of gross revenue.
Worked example: $80,000 take-home, 25% tax, 1,440 hours
You want to take home $80,000 a year. Business expenses are $5,000. Your effective tax rate is 25%. You bill 30 hours a week for 48 weeks.
- Billable hours: 30 hours a week × 48 weeks = 1,440 hours.
- Gross revenue needed: ($80,000 + $5,000) ÷ (1 − 0.25) = $85,000 ÷ 0.75 = $113,333.
- Tax on that gross: 25% of $113,333 = $28,333. Check: $113,333 − $28,333 − $5,000 = $80,000.
- Hourly rate: $113,333 ÷ 1,440 hours = $78.70 an hour.
Compare that with the naive rate: $80,000 ÷ 2,080 hours is $38.46 an hour. Charging $38.46 would leave you roughly half of your target after expenses and taxes.
What tax rate should you use?
- For a US freelancer, the combined effective rate is usually 25–30%: federal income tax plus 15.3% self-employment tax (12.4% Social Security up to the 2026 wage base of $184,500, plus 2.9% Medicare), plus state tax.
- If you are unsure, use 30% and treat the result as a safe upper bound.
- For a precise tax figure, run the numbers through the 1099 vs W-2 Calculator, which uses the 2026 federal brackets.
Estimates only. This calculator uses a single flat tax rate you enter. Real tax depends on your filing status, deductions, credits, and state. It is not financial or tax advice.
Related tool: 1099 vs W-2 Calculator — compare a contract rate with a salaried job, including benefits.