Hourly Rate Calculator – Freelance and Consulting Rate
Calculate the minimum hourly rate needed to meet your income goals as a freelancer or consultant.
About This Calculator
Calculate the minimum hourly rate needed to meet your income goals as a freelancer or consultant. Use the calculator above for instant results.
Worked Examples
- Billable: 1,440 hours | Base: $69.44/hr
- With taxes: $93.75 | With overhead: $112.50/hr
Answer: $112.50/hr recommended
- Base: $30/hr | With taxes+overhead: $48/hr
Answer: $48/hr
- Base: $133/hr | With overhead: $215/hr
Answer: $215/hr
Who Uses This Calculator?
Set rates to hit income goals.
Price services profitably.
Calculate minimum viable rate.
Understand true cost of self-employment.
Common Mistakes to Avoid
❌ Not accounting for self-employment tax
Freelancers pay 15.3% SE tax plus income tax. Your effective tax rate is 30-40%. Use the withTax rate as your floor.
❌ Assuming 100% billable time
Admin, marketing, and unbillable work consume 30-50% of time. 30 billable hours/week is realistic for most freelancers.
Frequently Asked Questions
Freelance vs employee rate?
Rule of thumb: hourly rate = annual salary / 1,000. $100K salary = $100/hr freelance rate (covers benefits, taxes, overhead).
How to raise rates?
Raise 10-20% per year or per new client. Existing clients: give 60-90 days notice. Higher rates often improve client quality.
When am I ready to go full-time freelance?
When freelance income exceeds salary x 1.5 (accounting for benefits you lose). Or when you have 6+ months of contracts secured.