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Freelance rate calculator
Start from what you want to take home, not from what others charge. Add taxes, business costs, and the hours you can really bill, and get the rate that pays for all of it.
This is your floor, not your price. Price by value when you can, and add a buffer for slow months.
How to calculate your freelance rate
Divide the revenue you need by the hours you can actually bill. Revenue is your take-home income grossed up for tax, plus the business costs an employer would normally cover. Billable hours are the part most people get wrong: admin, sales, and invoicing eat 25–40% of a working week, and nobody pays you for holidays. A rate that ignores either will feel fine for three months and then quietly starve your business.
FAQ
How many billable hours does a freelancer really have?
Usually 20–30 hours a week. The rest goes to finding clients, email, admin, and invoicing. Across a year with 6 weeks off, that's roughly 1,000–1,400 billable hours, not the 2,080 of a full-time job.
Should I charge hourly or per project?
Use the hourly rate as your floor, then quote per project where you can: estimate hours, multiply by your rate, and add a margin for risk. Fixed prices reward you for getting faster; hourly billing punishes it.
How do I convert my salary to a freelance rate?
Enter your old salary as take-home income, add what your employer paid for (equipment, insurance, pension), and use realistic billable hours. Most people land at 1.5–2.5 times their old hourly salary.
When should I raise my rate?
When you're booked out, when a client says yes instantly, or at least once a year. Put new rates in new contracts, and give existing clients 30–60 days' notice.
Got the rate? Get it in writing.
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