How do I calculate my freelance hourly rate?

Add the take-home income you want, your annual business expenses, and the tax you will owe, then divide by your realistic billable hours per year. Because most freelancers only bill 20–30 hours a week and lose 25–30% to self-employment and income tax, the rate is almost always higher than people guess. This free calculator does the full math instantly.

How much should I set aside for freelance taxes?

In the US, plan for self-employment tax of 15.3% on 92.35% of your net profit, plus federal income tax on top. Most freelancers set aside 25–30% of profit. The full Freelance Rate & Tax Calculator spreadsheet estimates self-employment tax, income tax and your four quarterly payments exactly.

Freelance Tools: Rate Calculator · Hourly Rate Guide · Tax Calculator · Self-Employment Tax · How to Set Rates · Invoice Template

Free Freelance Rate Calculator

Type the income you want to keep → see the exact hourly & day rate to charge after tax and expenses. No signup, instant.

Your numbers

Target take-home pay (per year, after tax) ($) Annual business expenses ($) Billable hours per week Weeks worked per year Estimated total tax rate Tax rate combines US self-employment tax (15.3%) + federal + state. The full spreadsheet works out your exact number.

What you must charge

Billable hours / year0

Pre-tax profit needed$0

Gross revenue to invoice$0

Tax to set aside$0

HOURLY RATE$0

Day rate (8h)$0

Know your number on every project — and never get surprised by a tax bill.

The free tool gives you one rate. The full Freelance Rate & Tax Calculator spreadsheet adds a reverse "what do I keep at $X/hr?" check, a real self-employment tax estimator (SE tax, the deductible half, income tax), and a quarterly tax planner with the four IRS due dates. Instant download, works in Excel & Google Sheets. One properly-priced project pays for it many times over.

Get the spreadsheet — $9, instant download →

Or get BOTH — calculator + professional invoice template — for $14 →

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📥 Get the free Freelance Tax Cheat Sheet (2026)

One printable page: the self-employment tax formula, how much to set aside per $1,000 invoiced, and the four quarterly due dates. Plus a short heads-up whenever the IRS changes a number or we ship a new free tool. No spam, unsubscribe anytime.

✅ You're in! Here is your Freelance Tax Calculator & guide → — open it now, and we'll keep you posted on tax changes and new free tools.

Freelance pricing & tax, explained (2026)

Why is my real rate higher than I think?

Two reasons freelancers undercharge. First, you don't bill 40 hours a week — admin, sales, and downtime mean most full-timers bill 20–30 billable hours. Second, you keep less than you invoice: US freelancers lose 15.3% to self-employment tax plus income tax, so roughly 25–30% of profit goes to taxes. Your rate has to cover both.

How do I find the exact number?

Work backward from the take-home you want. The full spreadsheet does it in one cell — and then tells you the self-employment tax to set aside and what to pay each quarter.

Also free: Self-Employment Tax Calculator →
See your estimated SE tax, the deductible half, and a rough federal income tax before you file.

This is a free self‑help calculation tool, not financial, tax, or accounting advice, and is not affiliated with or endorsed by the IRS. Tax rules change and depend on your full situation; always verify current rates at irs.gov and confirm with a qualified professional. Results are estimates based on the numbers you enter.