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//// Personal Finance · Freelance Pricing

Freelance Rate Calculator

Most freelancers undercharge by 40% because they price like employees. This calculator works backwards from what you actually want to take home.

Your real hourly rate

$130/ hour

That's 3.6× what an employee earning the same take-home gets paid hourly. If you're currently charging less than $130, you're not running a freelance business — you're subsidizing your clients with your own health insurance, retirement, and unpaid hours.

What you actually want

How much you actually work

Day Rate (8h)
$1,037
Weekly Project (5d)
$5,184
Monthly Retainer
$12,442
96 billable hrs/mo
Annual Revenue Goal
$149,308
what you must invoice

Where every invoiced dollar actually goes

Total: $149,308/yr

Take-home

$75,000 50%

Income tax

$31,088 21%

SE tax

$21,620 14%

Health ins

$9,600 6%

Retirement

$8,000 5%

Business exp

$4,000 3%

Why "just charge what an employee makes" doesn't work

The wrong way

$36.06/hr

Your desired take-home divided by 2,080 employee hours. This is what almost every freelancer accidentally quotes. It ignores taxes, benefits, and the hours you can't bill.

Your actual rate

$129.61/hr

3.6× the naive number. Covers your taxes, health insurance, retirement, business expenses, and the 40% of your week that's sales calls and admin you can't bill anyone for.

Numbers never leave your browser · Not financial or tax advice