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.
The divisor is where most of these calculations go wrong. Quoting, invoicing, chasing payment, admin, learning and looking for the next job take up a large share of the week, so a full-time freelancer typically sells somewhere between half and two thirds of the hours worked — roughly twenty to twenty-six billable hours out of forty. Divide the annual target by forty hours a week and you set a rate that mathematically cannot reach it, no matter how hard you work. Divide by the hours you can genuinely invoice, and the number that comes out is the one that pays for the whole job.
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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