Calculate your rate
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wks
hrs
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Your rate breakdown
Minimum hourly rate
$0
to hit your goal
Recommended rate
$0
+20% buffer for slow periods
Required gross revenue
$0
before taxes & expenses
Annual billable hours
0
at your utilization rate
How it's calculated
| Take-home income goal | $0 |
| Add: annual business expenses | $0 |
| Gross needed before expenses | $0 |
| Gross up for taxes (28%) | $0 |
| Required annual revenue | $0 |
| ÷ Annual billable hours | 0 hrs |
| Minimum hourly rate | $0 |
Why most freelancers undercharge
The most common mistake: taking your desired salary and dividing by 2,080 work hours. That ignores taxes (~28%), non-billable time (admin, sales, training), unpaid time off, and business expenses. You end up with a rate that looks good but leaves you earning far less than a salaried employee at the same nominal income.
Example: Want to "earn" $60K? You need to gross roughly $90K before taxes and expenses — which at 30 billable hours/week × 48 weeks means a rate of about $63/hour, not $29/hour.
The utilization factor
Not every working hour is billable. You spend time on emails, invoicing, marketing, learning, and admin. Most freelancers are 65–80% utilized. The lower your utilization, the higher your rate must be.