Freelance Rate Calculator

Setting the right freelance rate is one of the most important decisions you'll make as an independent contractor. Price too low, and you'll struggle to cover expenses and taxes. Price too high, and you might lose competitive bids.

The key is understanding your true costs. As a freelancer, you're not just responsible for the work—you're also the HR department, IT support, sales team, and finance manager. Your hourly rate needs to account for:

- Self-employment taxes (15.3% for Social Security and Medicare) - Federal and state income taxes - Health insurance (often $500-1,500/month individually) - Retirement savings (no employer match) - Unpaid time for admin, marketing, and business development - Professional development and tools - Vacation, sick days, and holidays (typically 2-4 weeks unpaid)

A common rule of thumb: Multiply your desired equivalent W-2 hourly rate by 1.5 to 2x. If you were making $40/hour as an employee, you might need to charge $60-80/hour as a freelancer to maintain the same standard of living.

Use this calculator to experiment with different rates and see your actual take-home pay after all expenses and taxes.