Step 1 of 5 — Set your hourly rate
Calculate your minimum hourly freelance rate based on your target income and expenses.
Email your comprehensive business metrics and projections
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Freelancer Finances
Next Step: Estimate self-employment tax
Minimum rate = (Target salary + expenses + benefits) / (1 - tax rate - SE tax rate) / billable hours. Add 20-30% profit margin on top. Billable hours = weekly hours × weeks worked per year.
Target Rate = (Desired Annual Income + Business Expenses) ÷ Billable Hours. At $100K target, $10K expenses, 1,040 billable hours: $106/hour minimum.
Expect 50-60% billable time. Admin, sales, marketing, and business development eat the rest. On a 40hr week: only 20-25 hours billed.
At minimum 1.5-2x equivalent employee salary. Self-employment tax (15.3%), no benefits, variable income, and overhead justify the premium.
Project pricing earns more when you're fast. Hourly protects you on complex work. Retainers (monthly) provide income stability. Mix all three as you grow.
Signs: always booked, clients never negotiate, you feel resentful about the work. Rule: raise rates until 20-30% of clients push back. That's market rate.
Calculations are for educational purposes only. Consult a qualified financial advisor for personalized advice.