Calculate exactly what hourly rate you need to charge as a freelancer
To earn $75,000 take-home as a freelancer you need to charge approximately $65-75 per hour depending on your expenses. Freelancers pay 15.3% self-employment tax on top of income tax. No paid vacation, sick days or employer benefits means your rate must be 40-60% higher than an equivalent employee salary.
Freelancer rate calculators determine the minimum hourly rate needed to match a target take-home income after self-employment tax, income tax, unpaid time off, health insurance and business expenses. Most new freelancers undercharge because they compare their rate to employee salaries without accounting for these additional costs.
Self-employment tax (15.3%) and federal income tax are calculated automatically.
You need to charge at least:
1440 billable hours/year × $82.24/hr
Assumes a single filer taking the standard deduction. Take-home is what you keep after every cost above. Taxes are figured on the revenue you bill, after business expenses and the health insurance deduction. Retirement savings are treated as after-tax, so deductible contributions such as a SEP-IRA would lower your rate.
| Rate | Annual Revenue | After-Tax Income | Status |
|---|---|---|---|
| $62.24/hr | $89,633 | $56,158 | ⚠️ Too low |
| $82.24/hr | $118,433 | $75,000 | ✅ Target |
| $102.24/hr | $147,233 | $93,682 | 🚀 Comfortable |
| $122.24/hr | $176,033 | $111,989 | 💰 Great |
At 30 billable hours/week you work ~40+ hours total but only bill 30. The rest goes to admin, marketing, networking, and business development. That is why freelancers must charge more than employees earning the same take-home.
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Educational estimate only. Tax calculations are approximate and do not account for all deductions. Consult a CPA for accurate figures.