Freelance Rate Pricing Calculator
(Target salary + overhead + profit margin) / billable hours = full freelance hourly rate.
Result
Required hourly rate
$90.98
Includes overhead, taxes, and 15% profit margin.
- Take-home salary$80,000
- Pre-tax salary need$106,667
- Plus overhead$12,000
- Subtotal$118,667
- Plus margin$17,800
- Total annual gross$136,467
- Hourly rate$90.98
Step-by-step
- Pre-tax salary needed = $80000 / (1 − 0.25) = $106,667.
- Add overhead $12000: $118,667.
- Add 15% profit margin: $136,467.
- Hourly rate = $136,467 / 1500 = $90.98.
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
Software subscriptions, insurance (health, liability), retirement contributions (you fund both halves), office (home or rented), education, accounting/legal fees.
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