Marketing
What hourly rate should you charge as a freelancer?
How much to charge per hour to hit your target net income after taxes, time off and business costs.
Quick answer
Most freelancers undercharge because they pick a number that "sounds fair" instead of working backwards from the life they want. The right hourly rate is not what competitors charge — it is what you must earn on every billable hour to cover taxes, unpaid time and real business costs, then still hit your target net income.
Minimum hourly rate
$38.87/h
- Day rate (8 billable hours)
- $310.93/day
- Gross income needed
- $48,648.65
- Billable hours per year
- 1,316
Covers taxes, holidays and costs — not negotiation room. Add 15–25% on top for buffer, sick days and clients who pay late. Part-time freelancers: lower weekly hours, same formula.
How it works
The calculator above does that math: net goal, tax rate, weeks off, software and accountant fees, divided by the hours you can actually sell. The result is a floor, not a ceiling — add 15–25% for negotiation, slow months and clients who pay late. If you invoice by project, multiply the hourly rate by realistic hours (always pad estimates). A freelance invoicing planner helps track billable vs admin time, which is where most rate mistakes start.
Frequently asked questions
Should I charge the same hourly rate for every client?+
Your floor rate stays the same; the price on the quote can vary with scope, urgency and value delivered. Rush work, strategy-heavy projects and clients who need more meetings justify higher effective rates. Never go below your calculated floor — that is when you subsidize someone else’s business with your time.
How many billable hours per week is realistic?+
Full-time independents often sell 25–32 hours out of 40 — the rest is sales, email, accounting and learning. Part-timers with another job might bill 10–15 hours. Use honest numbers in the calculator; inflating billable hours makes the rate look cheaper than reality.
Day rate or hourly rate?+
Day rates work when clients book you in blocks and you want fewer invoices. A common day rate is 6–8 billable hours × hourly rate, sometimes rounded up for on-site days with travel. Always define what counts as a "day" in the contract.
What tax rate should I use?+
Use your effective rate including income tax and social contributions — not just the headline bracket. In many countries freelancers land between 25–40% all-in depending on income and deductions. When in doubt, ask your accountant for an effective percentage and add a small buffer.
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