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Self-employed & tax / Freelance Hourly Rate Calculator

Freelance Hourly Rate Calculator

The hourly rate that covers the pay you want, your business costs and self-employment tax, based on the hours you can bill.
$

Enter a number from 0 to 10000000

What you'd want as a salary, before income tax.

$

Enter a number of at least 0

Software, equipment, insurance, health cover, accounting and so on.

h

Enter a number from 0 to 100

Whole number, 0–52

Adds the 15.3% SE tax on 92.35% of profit, so your target is what's left after it.

$

Enter a number of at least 0

$184,500 is the 2026 figure from the SSA. Check ssa.gov for the year you are filing.

Charge at least
$77.84 / hour
1,150billable hours a year
$89,518revenue needed
$0revenue $89,518
  • Expenses
  • Self-employment tax
  • Your pay
Pay you want$70,000.00
Self-employment tax · 15.3% of 92.35% of profit+$11,518.15
Business expenses+$8,000.00
Revenue needed$89,518.15
Billable hours · 25 h × 46 weeks1,150

Income tax is not included in the target. Raise your target pay if you want a number after income tax.

See breakdown

How the freelance hourly rate calculation works

  1. Start with the pay you want

    Pick a yearly figure before income tax, like a salary. $70,000 is the default.

  2. Add self-employment tax

    As a freelancer you pay both halves of Social Security and Medicare: 15.3% of 92.35% of profit. Keeping $70,000 after it needs about $81,518 of profit.

  3. Add business expenses

    Everything an employer would have paid for: software, equipment, insurance, accounting. These come straight out of revenue.

  4. Divide by billable hours, not working hours

    Admin, sales and unpaid gaps eat time. 25 billable hours a week over 46 weeks is 1,150 hours, far fewer than 2,080.

Worked example. To keep $70,000 after self-employment tax you need $81,518.13 of profit, which carries $11,518.13 of SE tax. Add $8,000 of expenses for $89,518.13 of revenue. Spread over 1,150 billable hours, that's $77.84 an hour.

Freelance Hourly Rate FAQ

How do I calculate my freelance hourly rate?

Add the pay you want, your business expenses and self-employment tax, then divide by the hours you can bill in a year. $89,518 over 1,150 hours is $77.84.

How many billable hours should I plan for?

Fewer than you work. Sales, admin, invoicing and learning take time nobody pays for, and you need holidays and sick days. The default here is 25 billable hours a week over 46 weeks (1,150 hours a year); track your own billable share for a few months and use that.

Should I include taxes in my hourly rate?

Yes. Self-employment tax is built in when the toggle is on. Income tax isn't, so set your target pay high enough to cover it.

How do I turn an employee wage into a 1099 hourly rate?

Don't just reuse the wage. As a contractor you also pay the employer's half of Social Security and Medicare (7.65%), your own health cover, equipment and unpaid time off, spread over fewer billable hours. Enter your old salary as the target pay to see the rate that replaces it; the W-2 vs 1099 calculator compares the two side by side.

Is the result tax advice?

No. It's a pricing estimate. Your real tax depends on your full return.

Sources: IRS: Self-employment tax · SSA: Contribution and benefit base

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