How this calculator works
This calculator separates a simple break-even rate from a target freelance rate. The break-even rate covers income and expenses before tax planning. The target rate estimates the gross billable rate needed after taxes, expenses, and realistic billable hours.
How to use this calculator
- Enter realistic values that match your current situation.
- Press Calculate to refresh the estimate.
- Compare the main result with the supporting details in the result panel.
- Change one input at a time to see which variable affects the result most.
FAQ
How much should freelancers charge per hour?
A sustainable rate should cover take-home income, taxes, expenses, admin time, and non-billable work. The result here is a minimum planning rate, not a ceiling.
What is the difference between break-even and target rate?
The break-even rate covers income and expenses before tax adjustment. The target rate estimates what you need to bill to reach your desired after-tax income.
Should freelancers include taxes in their rate?
Yes. Ignoring taxes can make a rate look profitable while leaving much less take-home income than expected.
Why are billable hours lower than working hours?
Freelancers spend time on proposals, calls, admin, learning, marketing, and unpaid revisions. Those hours should be priced into billable work.
Can I charge more than this calculator shows?
Yes. Strong positioning, niche expertise, fast turnaround, and high client value can support rates well above the calculated floor.