Calculators
Freelance Rate Calculator: Your Rate After Taxes, Expenses, and Platform Fees
Start from the income you want to keep, add taxes and fees, divide by hours you can actually bill. That's your rate floor — with the maths shown.
A client offers $40 an hour. After a 20% platform fee that's $32. After a tax reserve, less again. Is $40 still a good rate? Only the maths knows — and most freelancers never run it before saying yes.
DRAFT — NOT CPA/LEGAL-REVIEWED — in Compliance HOLD until a qualified CPA/legal reviewer is engaged; do not describe as reviewed.
The calculator
Try your own numbers
Start with what you need to live on — not what everyone else charges. Then add your costs back in. That is your floor.
What you need in your pocket after costs, before tax.
Software, laptop, phone, insurance — the lot.
46 leaves room for holidays and dry spells.
Only hours clients pay for. Admin does not count.
0 if clients pay you directly.
A rough reserve, not your tax bill. See the tax calculator.
Charge at least $59.13 / hour
At that rate, after a 10% fee you keep $53.22/hour. After a 25% tax reserve, about $39.91/hour. If that last number feels too low, your rate — or your hours — has to move. The maths will not bend for you.
Formula: (target pay + expenses) ÷ (weeks × billable hours) = hourly floor. Then subtract fees, then the tax reserve.
Estimate only. Assumes steady billable hours, which freelancing rarely is. Consult a tax professional for your actual tax position.
Guides that explain these inputs
A worked example, with the maths shown
Take a freelancer who needs $60,000 take-home, spends $8,000 on business costs, works 46 weeks, and bills 25 hours a week. Gross needed: $68,000. Billable hours: 46 × 25 = 1,150. Floor rate: $68,000 ÷ 1,150 = $59.13/hour. At a 10% fee that's $53.22/hour kept; after a 25% tax reserve, about $39.91/hour. Quote $50 and you have already priced yourself below what you need.
The formula
(target take-home pay + business expenses) ÷ (working weeks × billable hours per week) = hourly floor. Then: floor × (1 − fee %) = after fees. After fees × (1 − tax reserve %) = after reserve.
Assumptions and limits — read this before you trust the number
| Assumption | What it means for you |
|---|---|
| Billable hours | Only hours clients pay for. Admin, pitching, and learning don't count, which is why the floor is higher than people expect. |
| Steady hours assumed | The calculator assumes you bill the same hours all year. Real freelance years don't. Treat the result as a floor, not a forecast. |
| Tax reserve is not a tax bill | It is a rough share to hold back. Actual US tax depends on net income, deductions, and state. Consult a tax professional. |
Last checked: 25 October 2026. Figures are illustrative examples, not current IRS limits, unless stated. Tax rules change — re-check before filing.
What to do with the result
Use it as a starting point, then adjust for your real costs, your real months, and your real tax position. If the number surprises you, that's useful information — it usually means an input was optimistic, not that the maths is wrong.
Questions freelancers actually ask
What if a platform takes 20%?
Then a $60 rate keeps $48 before tax. Either raise the rate, find direct clients, or accept the lower net knowingly — not by accident.
Should I include holidays?
Yes. That's why the default is 46 weeks, not 52. Six weeks off, sick, or simply unbooked is normal, not lazy.
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Educational only. These numbers are estimates from the assumptions shown on the page — not advice for your situation, and not a prediction of what you'll owe or save. Tax and retirement rules change. Consult a tax professional before you act on a tax or retirement figure.