Freelance Rate Calculator

When calculating your freelance rates, you have more to think about than just a paycheck: there's taxes, business expenses, fees, and more. That’s why we’ve built this simple, easy-to-use freelance rate calculator. Just enter your information and quickly calculate your hourly rate, day rate, and per-project rate plus weekly and monthly revenue targets. Calculate now & start charging what you deserve!

Profit & Savings

After all your business bills are paid, how much do you want to make personally?
Include short-term savings but not Solo 401K or IRA contributions.
Include all contributions to retirement accounts (401k, IRA, etc.)
How much you want to make this year, after expenses.

Work Schedule

How many hours/day are you getting paid for? For most freelancers, it's about 60% of total work hours.
Even Tony Stark only has 24 hours in each day. We recommend working much fewer or you could get burned out.
You can't work more than 7 days in a week. We recommend 5 or less.
Factor in national holidays, time off, and sick days.
We love long vacations too, but you can't take more than 31 days off any month.
There's only so far you can go chargning by the hour. Fixed pricing is much better. Learn more.

Monthly Business Expenses

Include health insurance premiums, and any other insurance such as dental, optical, business, or liability insurance.
Attorney, bookkeeping, or accounting fees. Not taxes paid.
eg: Fonts, stock images, templates etc.
Business-only subscriptions. Include any software you pay for on a repeat basis. eg: Adobe, Grammarly.
Leave blank if you work from home.
Smaller items such as paper, ink, staples, or sticky notes. Not larger assets like computers which go in "hardware" below. ↓
Any non-recurring hardware or software. eg. Computer mouse, MacBook Pro, AppSumo Downloads, etc.
Domain registration fees. Hosting fees. Not website design or content fees. Put that in Advertising & Marketing. ↓
Any money you spend to drive traffic, fill your pipeline, or get new clients.
Anything that makes you a better business owner. eg. Training, conferences, books, etc.
Bills from other freelancers or contractors.

Monthly Fees

The average amount you pay to process a credit card payment. Not credit card interest rate.
Whole numbers, not percentages. eg. You process $12,000 in CC payments annually.
Whole number. Average Fees from Upwork, Freelancer, Fiverr, or any other marketplaces.
Total amount marketplaces pay you annually—before they take their fee.
Any other sales fees. eg. Affiliate fees, finder's fees, etc.
Any other sales-driven fees we've missed.

Taxes

Most U.S. citizens and permanent residents are. Learn more »
Find your state's tax rate.
Not sure? Check your last tax return.
Min Income: Tax %: Min Due:
You told us you want to make and save this amount.
What it costs to run your business.
Business income after business expenses including fees, taxes, etc.
How much owe based on your net income.

Results

This is a more accurate estimate
of the total revenue you need
to earn in order to meet your
spending, saving, and retirement goals.
Target average cost of each client project.
Target average hourly fee if you bill hourly.
Target average day rate.
Target average weekly income to hit your goals.
Target average monthly income to hit your goals.

How this freelance calculator works:

While most of the freelance rate calculators factor in your goals and work hours, this calculator uses information from the following critical factors to generate the most accurate freelance rate possible:

1. Revenue goal(s) for the year.

This calculator takes a profit-first approach to generating revenue. That’s why the very first question we ask is just how much “spendable income” you want to take home each year.

We’ll also ask about your retirement savings and other savings. You freelance to support your lifestyle. So we think it’s important to start with your own personal income and savings.

2. Ideal work schedule.

The last thing you want to do as a freelancer is work yourself to death. You started freelancing for more freedom and flexibility. So we ask exactly how many hours each day you want to work, plus how many days each week you’ll be working. Plus, don’t forget about those days off. You need ‘em. And the freelance calculator accounts for them.

3. Business expenses.

Of course, it doesn’t matter how much you charge if you’re incurring more business expenses than you make. So this freelance rate calculator takes into account all of your expenses to ensure you make the profit you want.

4. Business fees.

As a freelancer, you incur fees just like any business. In fact, many of these fees happen every time you complete a job. Whether you have to pay to process your client’s credit card or give Upwork their share of your client payment, fees are everywhere.

So we’ve added a whole “Fees” section to the freelance rate calculator to ensure you account for them when setting your rates.

5. Business taxes.

We can’t ignore taxes. For most freelancers, taxes can eat up from 15-17% of your total annual revenue. With this freelance rate calculator, you can estimate with great accuracy just how much you’ll need to set aside for taxes based on how much you hope to make for the year.

• • •

Finally, once we’ve added up all of your revenue goals together with your projected expenses and ideal work hours, we quickly calculate your ideal hourly rate, daily rate, per-project rate, weekly target, and monthly target.

We’ve covered every detail so you can set your freelance rate confidently.

Who’s behind this Freelance Rate Calculator…

This freelance calculator is offered for free from the team at Millo.co.

We’re a small team of scrappy freelancers trying to serve the greater freelance community.

Here’s a little bit about us:

Preston is a freelance writer and marketer who has been running Millo and serving freelancers since 2009. When he’s not working, he’s BBQing or hanging out with his family.

Bilal is a freelance digital marketer who specializes in creative content development, social media management, email marketing campaigns and more. When he’s not working, he’s getting into Formula 1, PC Gaming, and Sim Racing.

Mateo is a freelance business operations manager who specializes in building teams and perfecting processes for his clients. When he’s not working, he’s spending time with his family.

Questions about this rate calculator:

Why is my target revenue higher than my profit goal?

In order to hit your profit goal, the freelance calculator takes into account all the expenses you have to pay in addition to your own profit. In order to take home the amount you've requested, you have to make more money to cover costs like taxes, fees, and other business expenses.

How much should I try to save each year in short-term savings?

Aim to save at least 10% to 15% of your income in a regular savings account. This can be used for emergency funds, short-term goals such as vacations or vehicles, or even long-term savings goals like a down payment on a house.

How much should I try to save each year for retirement?

Aim to save for retirement by contributing to a tax-advantaged retirement account such as an Individual Retirement Account (IRA) or a Simplified Employee Pension (SEP) IRA. The contribution limits for these accounts vary each year, but as of 2023, the contribution limit for an IRA is $6,000 and for a SEP IRA is 25% of net self-employment income up to a maximum of $61,000. We recommend you aim to contribute as much as you can reasonably afford to these accounts in order to take advantage of tax benefits and ensure you have enough savings for retirement.

Why should I start with my target profit?

When calculating your freelance rate, it's important to consider your business profit very first. Freelancers who factor in expenses and market factors before they focus on profit, often end up struggling to thrive financially.

By inputting your profit first in this calculator, you're following the "profit-first" busines strategy and have a higher chance of growing your revenue over time.

What's the difference betweeen "work hours" and "billable hours"?

It's important that you calculate your freelance rate based on the billable hours you work. Billable hours are the time you spend working on projects that actually generate revenue for your business.

Other, non-billable hours include administrative tasks like accounting, bookkeeping, or even marketing.

You can learn more about billable vs. non-billable work below:

How many days off should I plan for?

In the United States, there are 10 federally recognized national holidays. As a freelancer, you may choose to plan for these days off or work through them.

You'll also want to account for vacation time, sick days, and—if your business can support it—even just a few extra days each year you're not planning on taking off. Things come up.

What are credit card fees and how are they difference from credit card interest?

Credit card fees are the charges that credit card companies impose on merchants for processing transactions. When you accept payment via credit card, the payment processing company charges a fee for processing the payment. This fee is usually a percentage of the transaction amount or a flat fee per transaction, and it varies depending on the credit card company and the payment processing company.

For example, if you charge $100 for a project and the credit card processing fee is 2.9%, then the credit card company will charge you $2.90 for processing the payment. In some rare cases, your client may pay these payment processing fees but typically, you want to factor them in when calculating your rate.

Credit card interest, on the other hand, is the cost of borrowing money on a credit card. If you uses a credit card as a freelancer to finance your business, you will be charged interest on the balance that you carry over from month to month. The interest rate varies depending on your credit card company and creditworthiness.

What are marketplace fees and how do I calculate them?

Freelance marketplace fees are fees charged by freelance platforms or marketplaces for using their services to find work and connect with clients. These fees can vary depending on the platform and the type of service being provided.

Below are some examples of the most common freelance marketplaces and their fee structures. If you're estimating your freelance rate today, you can use the values below to get started. If you're trying to be more precise, consult with the marketplace you work on for exact numbers.

Upwork: Upwork charges a sliding fee based on your earnings with a client. The fee ranges from 5% to 20% depending on the total amount earned from a client.

Fiverr: Fiverr charges a flat fee of 20% of the order value for orders up to $500, and a 5% fee for orders over $500.

Freelancer.com: Freelancer.com charges a fee based on the your membership level. The fee ranges from 10% to 20% depending on the membership level.

Guru.com: Guru.com charges a fee based on your membership level and the type of project being completed. The fee ranges from 4.95% to 8.95% depending on the membership level and the project type.

PeoplePerHour: PeoplePerHour charges a flat fee of 20% on the your freelance earnings.

What sales fees will I encounter as a freelancer?

In addition to credit card or marketplace fees, you may be subject to more sales fees as a freelancer. These might include:

Foreign transaction fees: These fees may be charged by payment processors when a transaction is processed in a currency other than your local currency.

Chargeback fees: These fees are charged by payment processors when a client disputes a transaction and you are required to refund the payment.

Payment processing fees: These are fees charged for processing payments via a payment gateway, such as PayPal or Stripe. These fees occur in addition to credit card fees.

Finder's fees: These are fees you might pay to fellow freelancers, former clients, or others who refer business to you on a regular basis.

What kinds of insurance should I include when factoring my freelance rate?

Below are some types of insurance that freelancers should consider. These are not all required to run a successful freelance business. We've bolded the most common.

  • Professional Liability Insurance (Errors and Omissions Insurance)
  • General Liability Insurance
  • Business Property Insurance
  • Business Interruption Insurance
  • Health Insurance
  • Disability Insurance
  • Life Insurance
  • Cyber Liability Insurance
  • Workers' Compensation Insurance
  • Auto Insurance (if using a vehicle for business purposes)

What counts as advertising and marketing expenses for freelancers?

Advertising and marketing expenses are expenses you incur to promote your business, build your brand, and attract new clients. Here are some examples of advertising and marketing expenses that may be deductible for tax purposes:

  • Website design and development costs
  • Social media advertising costs
  • Online directory listing fees
  • Business cards, brochures, and flyers
  • Advertisements in industry publications or online forums
  • Sponsorship of industry events or conferences
  • Promotional items such as pens, t-shirts, or stickers
  • Search engine optimization (SEO) services
  • Pay-per-click (PPC) advertising costs
  • Email marketing software and services
  • Public relations and media outreach costs
  • Video production and editing costs
  • Photography and graphics costs
  • Market research and surveys
  • Trade show and exhibition fees

    • What should I track for legal & accounting expenses?

    Here are some examples of legal and accounting expenses that may be deductible for tax purposes and should factor into your freelance rate calculation:

    • Legal fees for drafting or reviewing contracts, agreements, or leases.
    • Fees paid to a tax professional for filing taxes, bookkeeping, or preparing financial statements.
    • Fees for business formation or incorporation services.
    • Legal fees for trademark or copyright registration or protection.
    • Fees for obtaining licenses and permits necessary for conducting business.
    • Fees for business-related software and online services such as accounting software and legal document services.
    • Fees for consulting with an attorney or accountant regarding business-related matters.
    • Fees for debt collection services.
    • Fees for dispute resolution services.
    • Fees for drafting employee contracts or other legal documents related to employment.

    Do all U.S. freelancers have to pay federal taxes?

    Yes. All U.S. freelancers are required to pay federal taxes on their income. Freelancers are considered self-employed and must pay self-employment taxes, which include Social Security and Medicare taxes. These taxes are paid on the freelancer's net self-employment income, which is their gross income minus deductible business expenses.

    All U.S. freelancers must also file an annual federal income tax return and pay income tax on their net income after deducting business expenses and any applicable tax credits. The amount of income tax owed depends on the freelancer's income, filing status, and other factors.

    Additionally, freelancers may be required to make estimated tax payments throughout the year to avoid underpayment penalties. These estimated tax payments are based on the freelancer's projected income and tax liability for the year.

    What if I'm not a U.S citizen, but I have U.S. clients?

    The tax laws and regulations for non-US citizens may vary depending on several factors, including the type of visa you hold, the amount and source of your income, and any tax treaties that may exist between the US and your home country. It's important to consult with a tax professional who has experience with non-US citizens to determine your tax obligations and any potential tax implications.

    How does my filing status impact my freelance rate?

    Your filing status can impact the amount of taxes you owe on your freelance income and, therefore, your after-tax earnings. For example, if you are married and filing jointly, you may be eligible for certain tax deductions and credits that can reduce your tax liability and increase your after-tax earnings. On the other hand, if you are filing as a single taxpayer, you may not be eligible for some of these deductions and credits, which could result in a higher tax liability and lower after-tax earnings.

    It's important to understand how your filing status impacts your tax liability and to factor this into your pricing and budgeting as a freelancer. You may want to consult with a tax professional to determine the best filing status for your situation and to ensure you are taking advantage of all available tax deductions and credits.

    Feedback?

    Terms of Use for Freelance Rate Calculator: By using the Freelance Rate Calculator (the "Calculator"), you agree to be bound by these Terms of Use. If you do not agree to these Terms of Use, you should not use the Calculator. (1) Use at Your Own Risk: The Calculator is provided for informational purposes only, and is not intended to be used as a substitute for professional financial or legal advice. You acknowledge that your use of the Calculator is at your own risk, and that you are solely responsible for any decisions or actions you take based on the results of the Calculator. (2) Consult with Financial and Legal Professionals: The Calculator is not a substitute for professional financial or legal advice. You should consult with a qualified financial or legal professional before making any decisions based on the results of the Calculator. (3) No Liability: To the fullest extent permitted by law, no one involved in the creation or operation of the Calculator will be liable for any damages or losses (including, but not limited to, direct, indirect, incidental, consequential, or punitive damages) arising from the use or misuse of the Calculator, or from any errors or omissions in the information provided by the Calculator.
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