Work out the hourly rate you need to charge as a freelancer or contractor to match a salary, after self-employment tax, the benefits you now pay yourself, business costs, time off and the hours you can’t bill.
| What the rate has to cover | Per year |
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How billable hours change the rate
| Billable share | Billable hours a year | Hourly rate | Day rate |
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Updated 24 October 2026. Results are estimates for information only, not financial, tax, legal or investment advice. Actual rates, fees, taxes and rules vary. How our calculators work
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How to use the Freelance Hourly Rate Calculator
- Enter the salary you want to match, then the yearly cost of the benefits an employer would have paid (health insurance, retirement match) and your business expenses.
- Enter your weeks off (vacation, public holidays, sick days), your working hours per week and the share of those hours you can bill to clients.
- Read the hourly and day rate you need. The table shows how much the rate depends on the share of hours you bill.
About this tool
Dividing a salary by 2,080 hours gives a far too low freelance rate. An employee is paid for holidays and sick days, gets health insurance and a retirement match, and has the employer pay half of Social Security and Medicare. A freelancer pays all of that, plus software, equipment and accounting, and spends hours every week on work nobody pays for: finding clients, quoting, invoicing and admin.
How the rate is worked out: first, the calculator finds the business profit that leaves you as much after Social Security and Medicare as the salary would leave an employee. US self-employment tax is 15.3% on 92.35% of profit (the 12.4% Social Security part stops at the 2026 wage base of $184,500), where an employee pays only 7.65%. It adds the benefits and expenses you enter to get the revenue you need, then divides by your billable hours: working weeks × hours a week × the share you can bill.
Many freelancers find they need roughly 1.5 to 2 times the employee hourly rate to come out level, and more when billable hours are low. Income tax is not included because it is broadly similar either way (half of self-employment tax is deductible). Outside the US, untick the self-employment tax box and add your own social contributions to expenses. Once you’ve set your rate, bill it with the invoice generator.
Frequently asked questions
How much should I charge per hour as a freelancer?
Enough to cover the salary you want plus self-employment tax, benefits, expenses and unbillable time. To match a $75,000 salary with $7,000 of benefits, $4,000 of expenses, 6 weeks off and 65% of a 40-hour week billable, you need about $77 an hour. The employee rate for $75,000 is $36. Enter your own numbers above.
Why can’t I just divide my salary by 2,080?
Because 2,080 hours includes holidays, vacation and sick days that an employer pays for, and because not every working hour is billable. Freelancers commonly bill 50% to 75% of their working time. You also pay the employer’s share of Social Security and Medicare and your own benefits.
What is self-employment tax?
The self-employed version of Social Security and Medicare: 15.3% on 92.35% of your net profit, covering both the employee’s and employer’s halves. The 12.4% Social Security part applies only up to the annual wage base ($184,500 in 2026). Half of it is deductible for income tax.
What share of my time can I bill?
It varies by field and how established you are. New freelancers often bill well under half their time; busy ones with steady clients reach 70% to 80%. Track a few weeks honestly before relying on a figure.
How do I turn an hourly rate into a day or project rate?
A day rate is usually 8 times the hourly rate, sometimes with a small discount for booking whole days. For a project, estimate the hours, add a margin for revisions and unknowns (often 15% to 25%), and multiply by your rate.