How do I calculate my freelance hourly rate?

To calculate your freelance hourly rate, start with your target annual net income, add business expenses, taxes (typically 30–35% for self-employed in the US), and a profit buffer. Divide that required gross by your total billable hours per year. Then adjust upward based on your industry demand, experience level, and local market rates. RateRight does all of this automatically in seconds.

What is a good hourly rate for a freelancer?

A good freelance hourly rate depends on your industry, experience, and location. Entry-level freelancers typically charge $30–$60/hr, mid-level $60–$100/hr, senior freelancers $100–$150/hr, and experts or niche specialists $150–$300+/hr. Software developers, AI consultants, and fractional CFOs typically command the highest rates. Use RateRight to get a personalized rate based on your specific situation.

How much should a freelancer charge per day?

A freelance day rate is typically your hourly rate multiplied by 8 billable hours. For example, a mid-level UX designer charging $85/hr would set a day rate of around $680. Day rates are commonly used in consulting, design, and development projects where clients book blocks of time rather than hourly sessions.

What percentage of freelance time is actually billable?

The industry average for freelancer billable hours is 50–65% of total working time. The remaining time is spent on non-billable work such as client outreach, admin tasks, invoicing, marketing, and business development. When calculating your freelance rate, you must account for this to ensure your hourly rate covers your full income goal.

How do freelancers account for taxes in their rate?

Freelancers in the US typically set aside 30–35% for taxes, which includes self-employment tax (15.3%) plus federal and state income taxes. Your freelance rate must be calculated on a pre-tax gross basis so that after paying taxes, business expenses, and health insurance, you still reach your target net income. RateRight automatically builds taxes and expenses into your rate calculation.

What is a freelance retainer and how is it calculated?

A freelance retainer is a monthly fee a client pays to secure a set amount of your time or ongoing services. It is calculated by multiplying your hourly rate by your expected monthly billable hours for that client. Retainers provide income stability and are common in consulting, marketing, development, and design work.

Free Freelancer Rate Calculator — Know Exactly What to Charge

💰 Your Income Goal

What's your target annual income? (after taxes)

Your Location (city search — or select your state / province)

📍

📍 Search your city to apply local market rates

Your Industry / Skill

▼

Experience Level

📅 Your Work Schedule

Weeks worked per year 48 weeks

Hours worked per week 40 hrs

Billable hours (% of total) 65%

⚡ Industry average: 50–65% — the rest goes to admin, marketing & client chasing.

🧾 Expenses & Tax Buffer

Annual business expenses (software, equipment…)

Self-employment tax rate (US avg: 30–35%)

Include profit buffer (15%)

Recommended — covers dry spells and business growth

I pay my own health insurance

Adds ~$6,000/yr to your required gross income

📍 Select your city or region above before calculating

↓ Scroll to see your results

Your Minimum Hourly Rate (USD)

Based on your goals, schedule, and real expenses

Day Rate

8-hour billable day

Half-Day Rate

4-hour session

Monthly Retainer

Target monthly revenue

Required Gross

Before tax & expenses

📊 Income Breakdown

Target net income $0

+ Business expenses $0

+ Health insurance (if applicable) $0

+ Profit buffer (15%) $0

= Required gross (pre-tax) $0

Total billable hours/year 0 hrs

⚙️ How Your Rate Was Built

Base rate (income ÷ billable hours) $0/hr

× Industry demand factor —

× Experience level premium —

× Location market factor —

Industry and experience multipliers are derived from BLS Occupational Outlook data, MBO Partners State of Independence Report, and Codementor Developer Rates Survey. Green = market premium. Teal = competitive adjustment.

📈 How You Compare

Market Range: $0 – $0/hr You're in the — percentile

EntryMidSeniorExpert

Industry Hourly Benchmarks

Software Dev

$95–175

Finance / Acctg

$80–150

Consulting

$75–200

UI/UX Design

$60–130

Digital Marketing

$50–120

Copywriting

$45–110

Photography

$40–100

Sources: BLS.gov, MBO Partners State of Independence Report, Codementor Developer Rates, AIGA Design Salary Survey, EFA Rate Survey. Reviewed annually.

✦ Premium · One-Time

Get Your Professional Rate Card PDF

Send clients a polished, branded PDF with your rates — no more awkward "what do you charge?" conversations. Generates instantly with your exact numbers.

✓ Branded PDF with your name & rates

✓ Hourly, day, project & retainer rates

✓ Services & terms section included

✓ Instant download · no subscription

$19 $9 one-time

🔒 Instant delivery

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