Freelance Rate Calculator

Start with your target annual income, add business expenses (software, equipment, insurance), add taxes (SE tax ~15.3% + income tax), divide by billable hours (accounting for vacation and non-billable time). The result is your minimum hourly rate.

Utilization rate is the percentage of your working hours that are actually billable. Admin, marketing, invoicing, and learning are non-billable. Most freelancers achieve 60-75% utilization, meaning only 60-75% of hours generate revenue.

Project-based pricing is often more profitable as you capture the value you deliver rather than just time spent. As you get faster, hourly pricing penalizes efficiency. Consider hourly for open-ended work and project rates for defined deliverables.

The Freelance Rate Calculator is an online tool that lets you calculate your ideal freelance hourly and project rates. It is part of NexTool's collection of free tools designed to help you work faster and more efficiently.

The Free plan includes 10 tool uses per day. Some features require an account or a paid plan. Check the controls on the tool page and Pricing for the applicable limits.

The Freelance Rate Calculator returns results based on the inputs and the tool methodology. Check assumptions, units and source dates. Treat projections as estimates. For critical decisions, always consult a qualified professional.

Local calculations run in your browser. AI features, accounts, saved reports and external data requests use server services. Check the tool description and privacy policy for the relevant processing and storage.