Freelance Rate Calculator
Calculate a sustainable freelance hourly rate based on your income goal, costs, taxes, and billable utilization.
Last reviewed by the Radiatus Cloud team
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Work out a rate that actually pays
Freelancers often set rates too low by forgetting the costs an employer normally covers. This calculator works out a sustainable freelance hourly rate from your income goal, costs and billable hours, so you charge enough to actually make a living.
Why freelance rates must be higher than a salary implies
The classic mistake is dividing a desired salary by working hours, which ignores that a freelancer pays their own taxes, tools, insurance, time off and non-billable hours, and only some of the working week is actually billable. A sustainable rate must cover all of that from the hours you can actually charge for. Working backward from your income goal, adding costs, and dividing by realistic billable hours gives a rate that supports the life you want, rather than one that quietly leaves you working for less than an equivalent employee.
A planning estimate
This is an estimate for planning from the figures you enter, not financial or business advice. Real outcomes depend on factors beyond any single calculation, so treat the result as a guide. It runs entirely in your browser, so your figures are never uploaded and stay on your own machine, which matters for business numbers you would not want to share.
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Frequently Asked Questions
Why is a freelance rate higher than an employee’s equivalent?
Because a freelancer covers their own taxes, tools, insurance and time off, and only part of the week is billable, all of which the rate must cover.
What is the classic rate-setting mistake?
Dividing a desired salary by working hours. This ignores costs an employer normally covers and non-billable time, producing a rate that is too low.
What are billable hours?
The hours you can actually charge clients for, which is less than your working hours once admin, sales and breaks are excluded. The rate must cover costs from these.
How is a sustainable rate found?
By starting from your income goal, adding your costs, and dividing by realistic billable hours, so the rate supports the living you want.
Is my data uploaded?
No. The calculation runs entirely in your browser.
Privacy & Security
Calculated locally in your browser. No data is sent to any server.
How to Use
Enter your target income and utilization, then click Calculate.
Disclaimer: This tool is provided "as is" without warranty of any kind. Results are for educational and utility purposes.
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