How Much Should Freelancers Charge?
A sustainable freelance rate needs to cover income, expenses, taxes, time off, and non-billable work.
Start with your target income
Begin with the annual income you want to take home before personal taxes. Then add business expenses such as software, equipment, insurance, accounting, marketing, and payment fees.
Add tax and business buffers
A tax buffer is not a substitute for professional tax planning, but it helps avoid underpricing. Many freelancers also add a separate margin for slow periods and scope risk.
Estimate billable hours
Billable hours are usually lower than working hours because proposals, admin, sales, learning, and unpaid communication take time.
Use the calculator
Use the Freelance Rate Calculator to estimate minimum hourly rate, recommended hourly rate, day rate, and monthly target.
FAQ
How should freelancers set hourly rates?
Start with income goals, add business expenses and tax buffer, then divide by realistic billable hours.
Why are billable hours lower than working hours?
Freelancers also spend time on sales, admin, learning, meetings, proposals, and unpaid communication.
Should freelancers charge hourly or project rates?
Hourly rates are easier to calculate. Project rates can be better when scope and value are clear.