Career · official-source review · reviewed 2026-10-10
New freelancers divide desired salary by 2080 hours and end up under-earning because they forget billable time, taxes, and expenses.
Calculate a minimum hourly rate from target income, billable hours, taxes, and expenses.
New freelancers setting hourly rates.
Use the source document or official route that applies to your situation. This guide does not contact another person or verify external information.
Start with the annual take-home you need to live on.
Add business expenses, self-employment tax, and income tax.
Use 40–60% of 2080 hours as billable; the rest is admin, marketing, downtime.
Divide total required gross income by billable hours to get your floor rate.
Target $60k net, 60% billable time, 25% taxes, $12k expenses, requires about $56/hour billable.
Use your own source and details. The example is not a record about a real person or organization.
U.S. Small Business Administration · reviewed 2026-10-10
What this source supports: Freelance rates must cover taxes, expenses, downtime, and profit, not just desired take-home pay.
Source limit: This computes a floor rate; market rates in your field may differ.
These sources support the statements above. They do not show that every person needs this guide. They do not show a specific result.
This App computes a floor rate from your numbers. It is not financial or tax advice.
This computes a floor rate; market rates in your field may differ.
Use current instructions from the responsible organization. This guide is a planning aid, not an official decision or a substitute for qualified advice.
Calculate minimum billable hourly rate from target income, billable time, taxes, and expenses.
This computes a floor rate. It is not tax or business advice.
You enter every number yourself. The sources support the method and the limits. They do not produce a result for your specific case. Keep the original documents next to the sheet you build.
The App computes the worked example with your own numbers, in your browser.
APP 1
Calculate minimum billable hourly rate from target income, billable time, taxes, and expenses.
Free · no account · no upload
Open Freelance Hourly Rate Floor CalculatorThe App runs in this browser. It does not send or save entries. Copy, download, or print only when you choose.
This guide uses short, direct instructions as an ASD-STE100-style writing target. It is not a formal certification.
Companion App: Freelance Hourly Rate Floor Calculator. It runs in this browser and does not upload your entries.
This guide is edited for clarity and checked against the sources it links. It is not a substitute for official instructions or qualified advice. A linked source does not show that every person needs this guide.