Freelance Hourly Rate Calculator
Most rate calculators forget that freelancers pay 15.3% SE tax on top of income tax. This one doesn't. Enter your target take-home and we'll back into the hourly rate you need to actually charge.
Your goal
We'll back into the hourly rate that hits this take-home — including federal, SE, and state tax.
What you actually want in your pocket after Uncle Sam.
Realistic billable, not total worked.
52 minus your vacation + sick.
Software, home office, mileage, contractors.
Your rate to hit that take-home
Includes federal income, SE, and state tax — most rate calculators forget these.
Across 1,200 billable hours/yr.
Show the math
- Billable hours/year
- 1,200
- Gross needed
- $123,071
- − Expenses
- −$5,000
- Net (Schedule C profit)
- $118,071
- − Self-employment tax
- −$16,683
- − Federal income tax
- −$15,485
- − State tax (5%)
- −$5,904
- Take-home (target)
- $80,000
- ÷ Billable hours
- $102.56/hr
Effective tax rate 32.2% of net. Single-filer math, 2026 IRS figures.
Reality check: This rate assumes you actually bill all those hours. Most freelancers hit 50–70% of their stated capacity. Pad your rate or your hours accordingly.
Track your actual rate vs goal
Ledgentry tracks your real billed hours and effective rate as invoices clear — so you know whether you're actually hitting your target or quietly underearning. $29/mo, 14-day free trial, no credit card.
Why this matters
Freelancers who set rates by Googling "average rate for X role" consistently underprice. The reason: the W-2 averages they reference don't include the 15.3% self-employment tax (your share + the employer's share you now also pay), the health insurance you have to fund yourself, the unpaid time off, or the unbillable admin hours.
A $80,000 W-2 salary ≠ $80,000 freelance gross. To match the same lifestyle, you typically need 25–35% more in gross revenue.
What this calculator includes
- Self-employment tax (15.3% on 92.35% of net earnings, with SS portion capped at $182,400 for 2026)
- Federal income tax (2026 brackets, single-filer, with $15,750 standard deduction and half-SE deduction applied)
- State income tax (flat blended rate per your selection)
- Business expenses deducted from gross before tax
What it does NOT include (yet)
- Health insurance — solo premium can run $400–$1,500/mo. Add to expenses for a rougher estimate (or use the in-app version which models this directly).
- Retirement contributions — SEP-IRA / Solo 401(k) / SIMPLE IRA contributions reduce taxable income substantially.
- QBI deduction — the 20% qualified business income deduction can knock 4–6% off your federal tax bill.
- Unbillable hours — admin, sales, prospecting, sick days. Most freelancers hit 50–70% of their stated capacity. Pad your rate accordingly.