1. Start with the number you need
Add your target take-home income, business costs (software, hardware, insurance, accounting) and taxes. Self-employed people also pay for their own retirement, health cover and time off.
2. Use realistic billable hours
A full-time freelancer typically bills 50–70% of working hours. 1,000–1,400 billable hours a year is a common range. Measure yours with the utilization calculator.
3. Divide
Rate = (income + costs + taxes) ÷ billable hours. The hourly rate calculator does this in one step, and the salary-to-rate calculator starts from a job salary.
4. Check the market
Look at what peers with similar experience charge in your niche and clients’ budgets. If the market is lower than your floor, specialize, target bigger clients or reduce costs — do not just work more hours.
5. Package it
Clients buy outcomes. Convert your hourly rate into project prices, retainers or day rates with a buffer for scope creep.