Freelance Rate Pricing Calculator

(Target salary + overhead + profit margin) / billable hours = full freelance hourly rate.

Inputs

Software, insurance, office, taxes-on-salary.

Effective rate including FICA both halves.

Result

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General calculation reads

Amazon affiliate
How Not to Be Wrong
Jordan Ellenberg - math thinking
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The Joy of X
Steven Strogatz - accessible math
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Scientific calculator (Casio fx-991EX)
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How to use this calculator

  • Enter target take-home (after-tax).
  • Estimate annual overhead (software, insurance, retirement, etc.).
  • Pick effective tax rate.
  • Add profit margin (10-20% typical).
  • Read final hourly rate.

About this calculator

A more rigorous freelance pricing formula. Start with desired take-home, gross up for tax, add operating overhead, add profit margin (because freelancing is a business, not just a job), divide by realistic billable hours. Beats hourly-rate-from-target-income for actual rate-setting.

Frequently asked

What counts as "overhead"?+
Software subscriptions, insurance (health, liability), retirement contributions (you fund both halves), office (home or rented), education, accounting/legal fees.
Why include profit margin?+
A business needs profit to grow, weather slow periods, and reward owner risk-taking. 10-20% is typical for services.
Why is my rate so high?+
Because being a freelancer is expensive. The hourly rate that matches a $100k W-2 is often $150-200/hr — most new freelancers under-price.
Self-employment tax estimate?+
~25% effective covers SE-tax (15.3%) plus federal+state on remaining. Lower for low-income; higher for high-bracket coastal.
Should I quote this rate?+
It's your floor. Real-world rates depend on market, niche, urgency, client size. Position above this number for healthy margins.

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