How to Calculate Your Freelance Rate

Most freelancers underprice by 40%. Here's the math that fixes it.

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The Wrong Formula

  • Salary / 2080 = wrong
  • You don't bill 40hr/week
  • Real billable: 20-25 hrs/week
  • That changes everything
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The Right Formula

  • (Income + Expenses) / Billable Hours
  • Then add 20% profit margin
  • Example: $85K / 1,100 hrs * 1.2
  • = $93/hour minimum
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Expenses You Forgot

  • Self-employment tax: 15.3%
  • Health insurance: $400-600/mo
  • Software subscriptions: $200/mo
  • Equipment/year: $1,500-3,000
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Calculate Your Rate

Use our Hourly Rate Calculator. Plug in your numbers, get your minimum rate.

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