What Should You Charge as a Freelancer?
Most freelancers set rates by guessing or copying what others charge. This calculator works backwards from your income goal, accounting for taxes, expenses, and the hours that don't actually pay.
Why your rate needs to be higher than you think
Every hour you work isn't a billable hour. Proposals, client emails, invoicing, revisions outside scope, and slow weeks all eat into your productive time. Realistically, only about 70% of your working hours convert to actual income. The other 30% is overhead you absorb.
Self-employment tax: As a 1099 freelancer, you pay both sides of FICA. That's about 15.3% on top of regular income tax, though half is deductible. The calculator adds an effective 7.1% SE tax on top of your income bracket. Budget for this quarterly.
The 25% buffer: The recommended rate adds 25% above the minimum. Freelance income is lumpy. A slow month, a client who ghosts, or a project that runs long can all compress a month's pay. The buffer keeps you whole without scrambling.
How to actually get that rate
- Don't open with your rate. Understand the project scope first. Quoting before you know the scope almost always leaves money on the table.
- Quote projects, not hours. A fixed project price removes the client's urge to count hours and lets you get paid for speed, not slowness.
- Build a portfolio fast. Even if early work is discounted or spec, case studies and results convert skeptical clients at higher rates than a blank portfolio.
- Raise rates with new clients. It's easier to charge $75/hr to a new client than to justify a raise to someone paying you $45/hr. Segment your ladder.