Free Calculator — Signelo

Freelance Rate Calculator

Enter your income goal, tax rate, and billable hours. Get your minimum rate, recommended rate, and monthly revenue target - based on your actual numbers.

Income & Tax

$

What you want to actually keep after taxes and expenses.

%

US freelancers: 25–35% covers SE tax + federal + state for most income levels.

$

Health insurance, retirement contributions, disability coverage.

$

Software, equipment, insurance, accounting, marketing, home office.

Time

hrs

Hours you can actually bill, not total working hours. 15-25 is realistic for most freelancers.

wks

52 minus your vacation, sick days, and unplugged time. 48 = 4 weeks off.

—
Min. Hourly Rate
—
Recommended Rate
—
Day Rate (8 hrs)

Enter your numbers above to calculate your rate.

Revenue Breakdown

Desired take-home pay —
Benefits budget (annualized) —
Business expenses —
Tax buffer (30%) —
Total annual revenue needed —
Billable hours per year —
Monthly revenue target —
Export

How Billable Hours Change Your Rate

Same income goal. Different utilization. The fewer hours you bill, the higher your rate needs to be. The difference compounds fast.

Billable hrs/week Hrs/year Min. Rate Rec. Rate Monthly Target
Enter your numbers above to see the comparison.

How the rate is calculated

The calculator works backwards from your take-home goal. It adds back your benefits costs and business expenses, then grosses up the total for taxes to find the revenue you need to generate. That number is divided by your actual billable hours per year - which is where most freelancers get it wrong.

Working 40 hours a week doesn't mean billing 40 hours. Admin, sales, professional development, and gaps between projects eat into utilization. 20 billable hours on a 40-hour week is 50% utilization. Realistic, conservative baseline for most independent consultants.

The recommended rate adds a 20% buffer on top of the minimum. That buffer covers slow months, late-paying clients, scope creep you absorb without billing, and the occasional week you simply don't bill anything.

Templates built for people who run their own show.

The Founder's Toolkit includes a Client Pipeline Tracker, Traction Tracker, Finance Kit, and Launch Playbook. Built for the 0-to-1 phase.

View Templates →

Frequently asked questions about freelance rates

Start with your desired annual take-home income. Gross it up for taxes by dividing by (1 minus your tax rate). Add annual business expenses and benefits costs. That gives you total revenue needed. Divide by your actual billable hours per year, not your working hours. Add a 20% buffer on top for slow periods and late payments. That's your recommended rate.
Most experienced freelancers bill 15 to 25 hours per week, even working full-time. The rest goes to sales, admin, invoicing, professional development, and gaps between projects. A 50% utilization rate (20 billable hours on a 40-hour week) is a realistic and conservative baseline for most independent consultants.
Self-employed individuals pay a 15.3% self-employment tax (Social Security and Medicare) plus federal and state income tax. A combined rate of 25–35% is a reasonable planning assumption for most full-time freelancers earning $60K–$150K annually. In high-tax states or at higher income levels, use 35–40%. This calculator lets you set your own rate.
Common freelance business expenses: software subscriptions, equipment and hardware, professional liability insurance, accounting and legal fees, professional development, marketing and website costs, and home office expenses. A reasonable baseline for a knowledge-worker freelancer is $3,000–$8,000 per year, though this varies significantly by field and setup.
The minimum rate is breakeven. It assumes perfect utilization every week of the year. Reality includes slow months, time between clients, scope you absorb without billing, and late-paying invoices. The 20% buffer covers the gap between the plan and what actually happens. For newer freelancers or those in volatile markets, a 25-30% buffer is safer.
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