What should you actually charge?

Most rate calculators just halve a salary. This one builds your rate from the ground up — covering the taxes, self-funded benefits, unpaid hours, expenses, and time off that quietly eat a freelancer's income. Adjust the numbers; everything recalculates instantly.

Your target

Annual take-home you want in your pocket, after tax

Tax set-aside income + self-employment, estimate

Costs you now carry

Business expenses / year software, gear, fees

Health insurance / year self-funded

Retirement contribution / year

Other benefits to replace / year optional

Your time & cushion

Billable hours / week not all 40 are billable

hrs

Weeks worked / year 52 minus time off

wks

Billable hours / day for the day rate

hrs

Profit cushion buffer on top, optional

Your minimum billable rate

—/ hour

—

Day rate

—

Revenue / yr

—

Utilization

Where the rate comes from

Every billable hour has to cover all of this — not just your pay.

If your billable hours change

Same income need, fewer billable hours → a higher rate. This is why under-charging hurts most when you're busy with unpaid work.

Billable hrs / week	Utilization	Rate needed

› How this is calculated

The tool works backwards from the money that has to reach your pocket:

1. Your desired take-home is grossed up for the tax you set aside: pre-tax pay = take-home ÷ (1 − tax%).

2. Your business must also cover expenses and the benefits an employer used to pay (health, retirement, etc.). Add them: revenue = pre-tax pay + expenses + benefits.

3. An optional profit cushion is added on top for slow months and surprises.

4. That revenue is divided by your billable hours — the ones a client actually pays for — not your total working hours. Admin, sales, and email don't bill, so they're already priced in by using a realistic billable-hours number.

This is why an honest freelance rate is usually far above "old salary ÷ 2080." You're now self-funding everything a job quietly covered.

Estimates only — not tax, legal, or financial advice. The tax field is a single rough set-aside rate standing in for a real, bracketed tax situation; confirm your actual rate with a qualified professional. Figures assume the year you've entered and don't account for client mix, currency, or local rules.