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Income

Freelance Rate Calculator

Enter your desired income, expenses, and billable hours to find the minimum and recommended freelance hourly rate.

Updated June 2026 · Editorial standards

Rate Inputs

$
$
hrs
%
%
Recommended Rate
$97.55/hr
Minimum Rate
$81.29/hr
Annual Revenue Needed
$130,064
Effective Daily Rate
$780/day

To net $100,000/year after 15.3% SE tax and $12,000 expenses across 1600 billable hours: minimum rate = $81.29/hr. Recommended (with 20% buffer) = $97.55/hr.The recommended rate includes a profit buffer for non-billable time, gaps between projects, and slow periods. Remember to also set aside 20–30% of income for federal and state income taxes on top of SE tax.

By the KalkWise Editorial Team Reviewed for accuracy Updated June 2026

What is the freelance rate calculator — target hourly rate from salary?

In short

To match a $100,000 salary as a freelancer, you typically need to charge $65–$80/hour (billing 1,600 hours/year) to cover self-employment tax (~15.3%), business expenses, and unpaid time. The common rule: divide your annual salary by 1,000 to get your minimum hourly rate, then multiply by 1.5 for a sustainable rate.

Calculates the minimum and recommended freelance hourly rate needed to match a desired annual income after accounting for self-employment tax, business expenses, billable hours, and a profit buffer.

How to use this calculator

  1. 1Enter desired annual take-home income (what you want to net, not gross).
  2. 2Enter annual business expenses (software, office, equipment, professional development).
  3. 3Enter billable hours per year (typically 1,400–1,800 for full-time freelancers).
  4. 4Enter self-employment tax rate (15.3% default) and profit margin buffer.

The formula

gross needed=desired income1−SE tax
min rate=gross needed+expensesbillable hours
Gross Needed = I ÷ (1 − SE); Revenue = Gross + Expenses; Min Rate = Revenue ÷ H; Recommended = Min Rate × (1 + B)
I
— Desired net income
E
— Business expenses
SE
— Self-employment tax rate
H
— Billable hours
B
— Profit buffer %

Worked example

The scenario

$80,000 desired income, $12,000 expenses, 1,600 billable hours, 15.3% SE tax, 20% buffer.

gives

The result

Gross needed = $94,452. Total revenue needed = $106,452. Min hourly rate = $66.53. Recommended rate = $79.84.

Common use cases

  • Set your freelance rate when starting or adjusting pricing.
  • Evaluate whether to take a project at a client's offered rate.
  • Plan annual revenue targets.
  • Compare full-time employment offers vs. continuing freelancing.

Limitations & assumptions

  • Billable hours assume you find enough work to stay fully booked — actual utilization often starts lower.
  • Does not include income tax (federal + state) — add another 20–30% buffer for taxes beyond SE tax.
  • Rates vary dramatically by specialty, market, and reputation — research what the market pays.
  • Benefits (health insurance, retirement) are not fully accounted for in the SE tax adjustment.

Frequently asked questions

Employees have taxes withheld and get employer-paid benefits. Freelancers must self-fund: SE tax (15.3% vs. employee's 7.65%), health insurance ($5K–$20K/year), no paid vacation (2 weeks = 4% income loss), business expenses, and accounting fees. Add it up and $150K freelance income may net less than $100K as an employee.

Disclaimer: KalkWise calculators are provided for general informational and educational purposes only and do not constitute financial, investment, tax, or legal advice. Results are estimates based on the figures you enter and the assumptions described above. Actual outcomes will vary. Consult a qualified professional before making financial decisions.