Freelancer Rate Calculator - Hourly and Project Rate

Divide required annual revenue by annual billable hours. For $75,000 desired income plus $15,000 expenses at 30% reserve, required revenue is $128,571. At 25 billable hours for 46 weeks (1,150 hours), the rate is $111.80 hourly, about $894 daily and $2,236 for a 20-hour project.

Required revenue is (desired income plus business expenses) divided by one minus the reserve percent. For $75,000 plus $15,000 divided by 0.70 at 30% reserve, revenue is $128,571. At 25% reserve it is $120,000 and at 35% it is $138,462, an $18,462 range for the same take-home.

For many U.S. freelancers 30% is a common planning placeholder covering 15.3% self-employment tax up to $176,100 in 2026 plus federal and state income and a benefit buffer. On $128,571, SE tax is about $19,677, leaving about $18,894 for income tax and health or retirement.

Most solo freelancers bill 15 to 25 hours of a 40-hour week after sales, admin, learning and leave. At $128,571 required, 15 hours needs $186.32 hourly, 25 hours needs $111.80 and 30 hours needs $93.17, so 10 more billable hours cuts the required rate by $46.57 on the same income.

Charge hourly when scope is uncertain and fixed when scope is tight and you have data. At $111.80 hourly, a 20-hour fixed project at $2,236 plus 20% risk buffer is $2,683; if it takes 22 hours the effective rate is $121.95, still above the $111.80 floor and protected for two extra hours.

Dropping from 25 to 20 billable hours cuts yearly capacity from 1,150 to 920 hours, raising the required rate from $111.80 to $139.75 to keep $128,571, a $27.95 increase. Keeping the $111.80 rate at 920 hours yields only $102,857, $25,714 short.

This calculator does not include: (1) actual federal or state income tax, which depends on filing status and deductions; (2) sales tax collection, if any, on services; or (3) late payment risk, where a $2,236 invoice paid in 60 days costs about $111 in financing at 5% APR. It assumes the reserve you enter.

A $75,000 salary costs the employer about $88,000 with 7.65% FICA, unemployment and workers comp, plus about $7,000 in benefits for about $95,000 total. The $128,571 freelance revenue on 1,150 hours is $111.80 hourly, about 2.0 times the $36.06 salary hourly ($75,000/2,080), reflecting self-employment tax and non-billable time.

Yes, the day rate is hourly times 8, so $111.80 becomes $894 for 8 hours and $447 for a half-day of 4 hours. A $2,236 20-hour project at $111.80 is 2.5 days at $894, helping the client compare hourly versus project options.

No, it is a cost floor, not a market price. If market rate for your skill is $150 hourly, the $111.80 floor leaves $38.20 hourly profit above costs and reserve, or about $43,930 yearly on 1,150 hours. If market is $85, the $111.80 floor shows you need lower expenses or more billable hours.