Free tool · 2026 tax year
Freelance rate calculator
Start from the take-home pay you actually want. The calculator adds back 2026 self-employment and income tax, your business expenses and a buffer for slow months, then divides by your real billable hours to get the minimum hourly and day rate to charge.
Charge at least $79/hour or $625/day
Federal tax uses the 2026 figures in the self-employment tax calculator (IRS Rev. Proc. 2025-32, SSA wage base). A minimum to plan with, not tax advice.
Why freelance rates look high
A freelance rate has to cover things a salary never shows. You pay both halves of Social Security and Medicare through self-employment tax. You pay for your own software, equipment and insurance. And not every working hour is billable: admin, sales, invoicing and learning all take time nobody pays for. A $79 hourly rate can easily be the equivalent of a $60,000 take-home salary. The calculator shows exactly how.
A worked example
To take home $60,000 a year as a single filer with $6,000 of expenses, you need about $75,600 of profit before federal tax. Add expenses and a 10% buffer for slow months, and you need about $89,800 of revenue. At 25 billable hours a week for 46 weeks (1,150 hours), that's a minimum of $79 an hour, or about $625 a day. State income tax, if your state has one, pushes it higher.
Billable hours are the key number
Most freelancers bill well under 40 hours a week. Between 20 and 30 billable hours is common once you count finding work, admin and invoicing, and weeks off for holidays and illness. Be honest here: overestimating billable hours is the most common reason freelance rates end up too low.
Hourly, daily or project pricing
Your hourly rate is a floor, not necessarily what you quote. A day rate suits on-site or full-day work. Project pricing works well once you can estimate the scope, and it rewards you for working efficiently. Whatever you quote, send the numbers properly: the quote & estimate generator turns an accepted quote into an invoice in one click, and the freelance invoice template covers hourly and fixed-fee work.
What this doesn't include
It uses 2026 federal figures from the self-employment tax calculator, with the standard deduction and no other income. It doesn't include credits, retirement contributions or health insurance, beyond whatever you add to expenses. It's a floor to plan with, not a quote.
Frequently asked questions
How do I calculate my freelance hourly rate?
Start with the take-home pay you want, add your taxes and business expenses to get the revenue you need, then divide by your realistic billable hours for the year. The calculator does this with 2026 federal tax figures.
What is a day rate?
A day rate is what you charge for a full working day, usually your hourly rate multiplied by the hours in a day, often 7 or 8. It suits on-site, shoot-day or full-day project work.
How many billable hours do freelancers work?
Many freelancers bill 20 to 30 hours a week, because admin, sales, invoicing and learning take the rest of the working week. Plan for time off too, often 4 to 8 weeks a year.
How do I convert a salary to a freelance rate?
Use the salary you'd take home as the target, then add self-employment tax, expenses and the unpaid time freelancing brings. A freelance rate is typically well above a salary divided by 2,080 hours.
Should I charge hourly or per project?
Hourly suits open-ended or changing work. Project pricing suits well-defined scopes and rewards efficiency. Use your minimum hourly rate to check that any project price covers your time.