Freelance Rate Calculator
Find the minimum hourly rate you must charge to hit your income target after self-employment tax and business expenses.
How to Set Your Freelance Rate
Most freelancers underprice their work because they compare their hourly rate to employee salaries. This ignores the employer's hidden costs: FICA contributions (7.65%), health insurance, PTO, retirement matching, and overhead. A freelancer charging $80/hr may actually net less than an employee earning $55/hr after accounting for all these factors.
The SE Tax Factor
Self-employed individuals pay both the employee and employer share of Social Security and Medicare — 15.3% total on the first $176,100 of net earnings (2026). You can deduct half the SE tax on your income tax return, but it still represents a significant cost. This calculator uses an effective SE tax rate of 14.13% to account for the deduction benefit.
Why Add a 15% Buffer
The recommended rate adds 15% above the minimum to account for slow months, non-paying clients, scope creep, and underestimated expenses. Experienced freelancers consistently report that actual billable hours run 10–20% below projections in any given year.