Freelancer Hourly Rate Calculator
KhrisDigital Freelancer Hourly Rate Calculator is a free resource designed to help you figure out exactly what you should charge per hour as a freelancer.
Whether you’re a beginner just starting out or an experienced pro adjusting your rates, this calculator simplifies the math and gives you clarity on your pricing.
Why Setting the Right Freelance Rate Matters
One of the biggest struggles freelancers face is determining the optimal fee to charge.
Price yourself too low, and you risk burnout and resentment. Go too high, and you might price yourself out of projects. Striking the right balance is crucial – not just for landing clients, but also for building a sustainable business.
Your freelance hourly rate isn’t just about what feels fair. It needs to reflect your experience, the value you bring, the time you spend working and the time you spend on non-billable tasks like marketing, admin, and communication.
That’s where tools like this freelance pay calculator come in; it does the heavy lifting so you can focus on your craft.
How to Use The FREE Freelance Hourly Rate Calculator
Alright, here’s the deal: this calculator will take you from “hmm… what should I charge?” to a clear, confident hourly rate in under a minute.
Just follow these quick steps:
1. Start with your income goal
Type in how much you want to take home every month. Don’t hold back, if you want $10K/month, type “10000”
2. Add your monthly business expenses
Think about all the stuff you pay for to keep your business running — software, internet, equipment, contractors, insurance, even taxes if you want to include them. Pop that number in.
3. Choose how many days you work each week
Be honest here. If you say you work 7 days but really only work 5, put 5.
4. Enter your daily working hours
On those days, how many hours are you actually at your desk (or in the field) working?
5. How much of that time is billable?
This is the percentage of your time you can actually invoice clients for.
Spoiler: it’s never 100%. Admin work, marketing, and meetings don’t count. For most freelancers, it’s somewhere between 50–70%.
6. Add a profit margin (optional but smart)
This is your safety net for growth, slow months, and unexpected costs. Want to be aggressive? Go for 50%+.
Example: A 70% profit margin means you’re not just covering your bills, you’re building real cushion.
7. Check your results
Once you fill in your numbers, the magic happens:
- Base Hourly Rate – What you need to survive.
- Suggested Hourly Rate – What you should actually charge to thrive.
- Billable Hours – How many hours you can invoice each month.
- Required Monthly Revenue – The total you need to hit your goal.
8. Adjust until it feels right
Play with the numbers. If the rate looks too low, maybe you’ve underestimated your profit margin. Too high? Increase billable hours or lower your income goal (but only if you’re okay with earning less).
9. Round it off
Nobody quotes $202/hour. Make it $200, $205, or $210 depending on the positioning you want.
10. Reset anytime
Hit “Reset to Defaults” if you want to start fresh.
How to Calculate Your Freelance Hourly Rate Manually (Step-by-Step)
Here’s a simple framework for calculating your rate manually (but again, feel free to use the freelance hourly rate calculator above to automate this):
1. Decide Your Target Annual Income
How much do you want to make per year?
Be realistic, but don’t undersell yourself. Let’s say your goal is $60,000.
2. Estimate Your Yearly Business Expenses
Include things like:
- Software/tools
- Marketing costs
- Workspace rent or utilities
- Equipment
Let’s say this totals $10,000.
3. Calculate Your Billable Hours Per Year
If you work 5 days a week, 48 weeks a year (allowing time off), that’s 240 working days. If you can bill about 5 hours per day, that’s 1,200 hours per year.
4. Add a Buffer for Taxes, Sick Days, and Downtime
A good rule of thumb is to add 20–30% as a buffer. For our example, that’s another $18,000 (30% of $60,000).
5. Do the Math
Your total needed income = $60,000 + $10,000 (expenses) + $18,000 (buffer) = $88,000
$88,000 divided by 1,200 hours = $73.33/hour
That’s your minimum hourly rate to reach your goal.
Now, instead of doing this math manually every time, just plug your numbers into the freelance fee calculator above.
Hourly Rate vs Day Rate vs Project Pricing
There’s more than one way to charge clients:
Hourly Rate – Great for flexible or ongoing projects
Day Rate – Ideal for short-term engagements or full-day bookings.
Project-Based – Best for clearly scoped work with a defined deliverable
Each has its place, but knowing your hourly baseline helps you price all three correctly. For instance, a freelance day rate is usually 7–8x your hourly rate.
What Should Beginners Charge on Freelancer.com or Upwork?
There’s no universal answer, but here’s a guide:
- Entry-level: $15–$25/hr
- Intermediate: $30–$50/hr
- Expert: $60+/hr
You can charge more over time as you:
- Build a strong portfolio
- Get positive client reviews
- Specialize in high-demand niches
Our freelance salary calculator can help you set a realistic goal and grow from there.
Freelance Rates by Industry and by Field
Here’s a quick look at average hourly rates across industries based on statistics from Zippia:
By Field:
| Field | Average hourly rate |
|---|---|
| Project Management | $28 |
| Multimedia Production | $25 |
| Sales | $25 |
| Programming | $25 |
| Marketing | $23 |
| Finance | $23 |
| IT | $23 |
| Translation | $20 |
| Web & Graphic Design | $19 |
| Content Writing | $15 |
By Industry:
| Industry | Average hourly rate |
|---|---|
| Legal | $28 |
| IT & Programming | $21 |
| Engineering & Manufacturing | $21 |
| Multimedia & Design | $20 |
| Finance & Management | $19 |
| Marketing & Sales | $18 |
| Translation & Writing | $16 |
| Administrations & Customer Support | $11 |
These numbers are ballpark estimates and vary by region, niche, and demand. Use the freelance rate calculator to tailor this to your goals.
Don’t Forget About Taxes and Hidden Costs
As a freelancer, you’re responsible for your own taxes and business expenses.
When someone asks: “Self-employed, how much should I charge per hour?” — this is where the answer really changes.
You need to account for:
- Self-employment taxes (15–30% depending on country)
- Equipment and tool upgrades
- Downtime between clients
- Health insurance and retirement savings
The freelance calculator tax field/profit margin field above helps you build this buffer in.
How to Negotiate Higher Freelance Rates
Whether you’re on Upwork, Fiverr, or working with private clients, here’s how to negotiate better pay:
- Show the ROI of your work (how you save time or make money for clients)
- Create packages that emphasize value
- Provide social proof like testimonials or results
- Don’t be afraid to walk away from lowball offers
And yes, you can always increase your freelance hourly rate as your portfolio grows.
Platform Rates: Upwork, Fiverr & Others
When using freelance platforms, keep in mind they take a cut:
- Upwork: 10–20% depending on billing history
- Fiverr: 20% flat
So if you want to earn $50/hour, you might need to set your rate to $60/hour to account for the fees. The Upwork fee calculator for clients and freelancers can help you adjust for this.
Frequently Asked Questions (FAQs)
How much should I charge per hour as a freelancer?
The amount you should charge depends on a mix of factors—your desired income, working hours, business expenses, taxes, and experience level. Our freelance hourly rate calculator helps you figure out the perfect rate for your situation.
How do I calculate my freelance rate?
You can calculate your freelance rate by adding up your income goal, business expenses, and a buffer for taxes, then dividing that total by your estimated billable hours. The calculator on this page makes that process fast and easy.
What’s a good hourly rate for a freelance writer or designer?
Freelance writers often start around $15–25 per hour, and designers around $20–30. However, experts with a strong portfolio can charge significantly more—sometimes over $100/hour.
Can I increase my freelance rate later?
Yes, and you should! It’s a good idea to review and update your rates every 6 to 12 months as your skills improve, your demand grows, or your expenses change.
Do freelancers earn more than full-time workers?
Many freelancers do. According to surveys, more than 60% say they earn as much as or more than they did in traditional jobs, especially those in high-demand niches.
How do I decide between hourly or project pricing?
Hourly pricing is great for ongoing or flexible work. Project-based pricing works best for defined deliverables. Understanding your hourly rate helps you create accurate project quotes.
How much can freelancers earn per year?
Earnings vary widely. Some freelancers earn around $30,000 annually, while others in specialized roles make over $200,000. Your rate, workload, and niche all play a role.