Question 1

How do I calculate my hourly rate as a freelancer?

Accepted Answer

Add the take-home income you want, gross it up for taxes (divide by 1 minus your tax rate), and add your annual overhead. Then divide by the number of hours you can actually bill in a year — typically 1,000 to 1,500, not 2,080. The calculator above runs this formula for you and shows daily and project equivalents.

Question 2

How many hours a year does a full-time freelancer actually bill?

Accepted Answer

Most full-time solo freelancers bill 1,000 to 1,500 hours a year, which works out to 20–30 billable hours a week across 48–50 working weeks. The rest of the time goes to sales, admin, and unpaid project work like scoping and revisions. Anyone telling you to plan for 2,080 is selling something.

Question 3

What tax rate should I use in the calculator?

Accepted Answer

If you're US-based, add your federal income tax bracket plus 15.3% self-employment tax, then add state tax. For most freelancers earning $60–120k, that lands between 25% and 35%. UK, Canadian, and EU freelancers should plug in their effective rate including national insurance or equivalents. Your accountant's number beats any default.

Question 4

Should I charge more than my old salary divided by 2,080?

Accepted Answer

Yes, by a lot. As an employee, your employer covered roughly half your payroll tax, your health insurance, paid vacation, sick days, retirement match, equipment, and software. Replacing all of that yourself usually means charging 1.4–1.7× the simple salary-to-hourly conversion just to break even on lifestyle.

Question 5

What's a normal freelance hourly rate in 2026?

Accepted Answer

It depends entirely on discipline and market. Common 2026 ranges: copywriters $40–120/hr, graphic designers $35–100/hr, web developers $50–150/hr, senior consultants and specialists $150–300/hr+. Use the calculator to find your floor, then check sites like Upwork, Contra, or your discipline's Discord for ceiling data in your niche.

Question 6

Is it better to charge hourly or per project?

Accepted Answer

Hourly is easier to start with and protects you on scope creep. Project-based pricing usually pays better once you can scope accurately, because clients pay for the outcome, not your time. Most experienced freelancers quote project rates derived from an internal hourly rate — exactly what this tool produces.

Question 7

How do I include overhead in my freelance rate?

Accepted Answer

Add up everything your business pays for in a year: software (Adobe, Figma, accounting tools), insurance (health, liability, equipment), hardware refresh, coworking or home office, professional development, and accountant fees. Drop the total into the overhead field — it gets baked evenly into your hourly rate.

Question 8

Can I use this calculator if I'm part-time or doing freelance on the side?

Accepted Answer

Yes. Set billable hours per week to whatever you actually have available — 5, 10, 15 — and adjust working weeks accordingly. The math is identical; just be aware that side-hustle rates often need to be higher per hour because your fixed overhead doesn't scale down.

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