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Unitly

Freelancer Hourly Rate Calculator

A freelance rate must cover more than salary: taxes, unbillable time, time off and business costs. Enter your target income and realistic billable hours to find the rate that actually works.

Inputs

Combined % of gross earnings consumed by taxes and expenses.

Be realistic — 25–30 is common, not 40.

Subtract vacation and downtime.

Results

Required hourly rate

$86.96

Gross income needed
$100,000
Billable hours / year
1,150
Daily rate (8h)
$695.65

If the resulting rate feels high for your market, the levers are: more billable hours, lower cost/tax drag, or higher-value positioning.

Formula

Rate = Target Income ÷ (1 − Tax & Cost %) ÷ (Hours × Weeks)

FAQ

Why gross up for taxes?

As a freelancer you pay income tax, self-employment tax and business costs out of your rate. Quoting the net target without gross-up guarantees under-earning.

Should I charge hourly at all?

Hourly is simple and fair for open-ended work; fixed pricing captures more value on well-scoped projects. Many freelancers evolve toward value-based pricing.