Common questions about the freelance rate calculator, answered directly.
Start with your target take-home income. Add all business expenses (health insurance, retirement, software, accountant). Gross that up for your self-employment tax rate. Divide by your actual billable hours — accounting for admin time and gaps between clients.
As a US freelancer, you pay self-employment tax (15.3% for Social Security and Medicare) plus income tax. An effective total rate of 30-40% is typical for freelancers earning $60-150k. Use 35% as a starting estimate and adjust based on your actual situation.
Most freelancers bill 800-1,400 hours/year — far less than a 2,080-hour salaried year. Admin, sales, proposals, and gaps between clients consume 30-50% of total working time. New freelancers should use a conservative 50% billable estimate.
Project pricing is generally better for experienced freelancers — it rewards efficiency and removes the ceiling on what you can earn. Hourly rates work well when scope is unclear or ongoing. The calculator builds your floor hourly rate, which you can then convert to project pricing.
When you have a consistent waitlist, when you're turning down projects, when your skills have materially improved, or simply annually to keep pace with inflation. Most freelancers undercharge — raising rates rarely loses as many clients as feared.
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