Freelance rate calculator
Work back from the money you want to keep. See the hourly rate, day rate and monthly billing you need as a freelancer, consultant or 1099 contractor, after tax and the costs a job used to cover.
Your minimum hourly rate
$0
for 0 billable hours a year.
Where the money goes
| Billed to clients | - |
|---|---|
| Business expenses | - |
| Federal tax (SE + income) | - |
| Health insurance | - |
| Your take-home | - |
This is the floor, not the market rate. State tax, retirement savings and a cushion for slow months are not included. Federal tax only.
Why freelance rates look high
Three things a job covers that a freelancer pays for:
- The employer half of payroll tax. Self-employment tax is 15.3 % on 92.35 % of profit, double what an employee pays.
- Benefits. Health insurance, paid time off and retirement contributions now come from your rate.
- Unbilled time. Finding clients, quotes, invoices and email are work, but nobody pays for those hours.
Three examples
| Freelancer | Take-home | Billable hours | Minimum rate |
|---|---|---|---|
| Designer: $6,000 expenses, $500 a month health insurance | $60,000 | 25 a week, 46 weeks | $77.12/hr |
| No expenses or insurance, full-time hours | $50,000 | 40 a week, 52 weeks | $30.12/hr |
| Same, with realistic hours | $50,000 | 25 a week, 46 weeks | $54.48/hr |
All single filers, federal tax only, 2026 figures. The designer bills $88,693 a year to keep $60,000; a W-2 job with health insurance would need to pay about $72,736 for the same take-home. The last two rows show that billable hours move the rate more than tax does.
What the calculator assumes
- Self-employment tax and federal income tax with the standard deduction and the 20 % QBI deduction.
- Health insurance premiums count as the self-employed health insurance deduction, which lowers income tax but not self-employment tax.
- No state tax, retirement contributions or savings cushion. Add them to your take-home goal if you want them covered.
Already have an offer? Compare it with a salaried job in the 1099 vs W-2 calculator. Already billing? See your tax with the 1099 tax calculator and what to put aside in how much to save for taxes on 1099 income.
Questions
How do I calculate my freelance hourly rate?
Start from the take-home pay you want. Add federal and state tax, health insurance and business expenses to get what you need to bill in a year. Divide by the hours you can actually bill, not the hours you work. The calculator does the tax part with 2026 IRS figures.
How many billable hours does a freelancer have in a year?
Often 1,000 to 1,500. Sales, admin, invoicing and learning take time you cannot bill, and there are gaps between clients. 25 billable hours a week for 46 weeks is 1,150 hours, against 2,080 for a full-time job.
How do I convert a salary to a contractor hourly rate?
Do not divide the salary by 2,080. A contractor pays both halves of Social Security and Medicare, buys their own insurance, has expenses and bills fewer hours. To keep the same take-home as a $60,000 salary while billing 25 hours a week for 46 weeks, a contractor with no other costs needs about $55 an hour, and more with insurance and expenses. To compare one offer side by side, use the 1099 vs W-2 calculator.
Is this the rate I should charge?
It is your minimum: the rate below which the work does not pay what you need. What clients pay depends on your field, experience and market. If the market pays more, charge more; if it pays less than your minimum, change the hours, the costs or the clients.
Sources
Last updated November 4, 2026. Figures for tax year 2026 from IRS and SSA sources.