What should you charge?

Enter your income goal, expenses, and time assumptions — get a precise hourly rate in seconds.

Planning mode

Desired annual income

After taxes — the amount you want to take home each year.

Working weeks per year

wks

48 weeks leaves 4 for vacation and sick days.

Hours per week

hrs

Total hours available, not just billable hours.

Billable time

Most freelancers bill 60–70% of their time. The rest is admin, sales, and non-billable work.

Monthly business expenses

Software, equipment, co-working space, subscriptions, etc.

Effective tax rate

Self-employment adds ~15% on top of income tax. 25–35% is typical in the US.

Fill in your details to see your rate

All inputs must be valid to calculate

Managing your rate is only half the job — the real challenge is tracking income, taxes, and clients consistently.

Recommended tools

These are affiliate links — we may earn a commission at no extra cost to you.

QuickBooks

Accounting & Tax

Best for taxes

Automatically tracks income, expenses, and taxes so you always know what you'll actually take home.

See QuickBooks plans

FreshBooks

Invoicing & Time Tracking

Best for invoicing

Helps freelancers get paid faster and cut down on late payments.

Try FreshBooks free

HoneyBook

Client Management

Best all-in-one

Built for closing clients faster with less back-and-forth.

Explore HoneyBook

How to price your freelance work

Pricing is the most common mistake new freelancers make. Most people pick a number that feels competitive with what employees earn — then realize six months in that they're effectively working for far less. The problem is that freelance income and employee salary are structurally different.

As a freelancer, you pay both sides of Social Security and Medicare (~15%), you cover 100% of your own benefits, you have no paid vacation, and you spend a significant portion of your time on non-billable work. A $80,000 salary employee and a $80,000 freelance income are not the same — the freelancer has substantially higher effective costs.

The formula that matters

SoloRates uses a three-step formula. First, your income target is grossed up for taxes — to net $50,000 at a 20% effective rate, you need $62,500 in profit. Second, annual business expenses are added, since those must also be billed for. Third, the total revenue is divided by your actual billable hours. The result is your break-even rate; the safe rate adds a buffer to protect against slow months.

Three mistakes that keep freelancers underpaid

1.Overestimating billable hours. Assuming you can bill 80–100% of your time is unrealistic. Admin, proposals, client onboarding, and slow weeks all eat into billable hours. 60–70% is typical; plan for 55% if you're building the business.
2.Ignoring self-employment tax. The extra ~15% catches many freelancers off guard at tax time. Set aside 25–30% of every invoice payment, not just what you estimate as income tax.
3.No safety buffer. Even one month without a client — a gap between projects, an unpaid invoice, a health issue — can wipe out months of savings if your rate is calculated at the bare minimum. A 25% buffer is the industry-standard cushion.

Run the numbers honestly, set a rate that actually works, and revisit it every six months as your costs and experience change. A rate that felt ambitious when you started should feel reasonable — even conservative — once you're established.

Frequently asked questions

How is the hourly rate calculated?

SoloRates works backward from your desired take-home income. First, it grosses up your income target for taxes — so if you want $50,000 after a 20% tax rate, you need $62,500 in profit. Then it adds your annual business expenses. Finally, it divides that total revenue need by your estimated billable hours per year. The result is the minimum rate you must charge to meet your income goal.

What is the "safe" hourly rate?

The safe rate adds a buffer on top of the required rate. In Comfortable mode, that's 25%. This buffer protects you from slow months, unexpected expenses, or a client who takes longer to pay. Think of it as the rate you should actually quote to clients, with the required rate being your absolute floor.

Why does billable time matter so much?

Billable time is the single biggest lever in freelance pricing. If you work 40 hours a week but only 60% is billable, you have 24 billable hours — not 40. The remaining 16 hours go to admin, sales, professional development, and non-billable work. Charging as if you have 40 billable hours is a common mistake that leaves freelancers underpaid.

Should I include self-employment tax?

Yes. In the US, self-employed individuals pay self-employment tax (Social Security + Medicare) of about 15.3% on top of federal and state income tax. A freelancer earning $60,000 might pay an effective combined rate of 28–35%. Use the tax rate field to set your realistic combined rate, or ask your accountant for guidance.

What counts as a business expense?

Business expenses are costs you incur to run your freelance practice: software subscriptions, hardware, a co-working membership, professional development, business insurance, and a portion of internet/phone bills. Many of these are tax-deductible, which is why the calculator accounts for them separately from your personal income goal.

What is the Aggressive growth mode?

Aggressive growth mode adds a 40% safety buffer, assumes only 55% billable time (more conservative), and adds a 15% reinvestment margin on top of your expenses. This is for freelancers who want to actively grow their business — investing in tools, marketing, or subcontracting — while still maintaining a strong income.

How to price your freelance work

The formula that matters

Three mistakes that keep freelancers underpaid

1.Overestimating billable hours. Assuming you can bill 80–100% of your time is unrealistic. Admin, proposals, client onboarding, and slow weeks all eat into billable hours. 60–70% is typical; plan for 55% if you're building the business.
2.Ignoring self-employment tax. The extra ~15% catches many freelancers off guard at tax time. Set aside 25–30% of every invoice payment, not just what you estimate as income tax.
3.No safety buffer. Even one month without a client — a gap between projects, an unpaid invoice, a health issue — can wipe out months of savings if your rate is calculated at the bare minimum. A 25% buffer is the industry-standard cushion.