Hourly Rate Calculator

Calculate the perfect hourly rate that covers all costs, taxes, and profit. Free tool for consultants, freelancers, and contractors to price services competitively.

Key Benefits:

  • Tax-inclusive rate calculation
  • Profit margin optimization
  • Cost coverage guarantee
  • Competitive pricing insights
  • Sustainable rate planning
  • Professional pricing confidence

Calculator Inputs

Enter your financial goals and work schedule to calculate your ideal hourly rate.

Share Your Scenario

Copy link with your current inputs

$

Your desired personal income before taxes

$

Business expenses like rent, software, insurance, marketing

Working weeks minus vacation and sick time (default: 46)

Hours spent on billable client work (default: 25)

%

IRS self-employment tax rate (default: 15.3%)

%

Additional buffer above costs for profit and unexpected expenses

Recommended Hourly Rate

$102/hr

This rate covers all your costs, taxes, and desired profit margin.

Rate Breakdown

Salary Component
$65
83.3%
Overhead Component
$13
16.7%
Tax Component
$14
13.9%
Profit Margin
$9
9.1%
Total Hourly Rate$102
SalaryOverheadTaxMargin

Key Insights

Charging $102/hr gives you $75,000 take-home after taxes and $10,626 profit buffer annually. Based on 1150 billable hours per year.

Frequently Asked Questions

How do I calculate my freelance hourly rate?

Calculate your hourly rate by dividing your annual income goal plus expenses and taxes by your billable hours per year. Our calculator automates this process and includes profit margins.

What should I include in my expenses?

Include all business expenses: equipment, software, insurance, marketing, office space, professional development, and a buffer for unexpected costs.

How much should I charge as a beginner freelancer?

Even beginners should charge rates that cover costs and provide reasonable profit. Start with market research and use our calculator to ensure your rates are sustainable.

Should I include vacation time in my rate calculation?

Yes, factor in vacation time, sick days, and non-billable time. Our calculator helps you determine realistic billable hours per year.

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Results are estimates for informational purposes only. Consult professionals for important decisions.