Freelancers
Freelance rate calculator
Turn an annual income goal, business expenses, time off, and billable hours into an hourly, day, and weekly rate. You can add a 2026 federal tax cushion so the rate is more likely to leave the take-home you planned.
How this rate is figured
- Billable hours = (52 − weeks off) × hours in a working week × utilization.
- If you chose a take-home goal and a tax cushion, the calculator solves for the net profit that leaves that take-home after the selected 2026 federal taxes. Otherwise it uses your goal as the profit figure.
- Revenue needed = profit needed + business expenses. If you entered a buffer, revenue is then divided by (1 − buffer).
- Hourly rate = revenue needed ÷ billable hours. The day rate is eight times that hourly rate.
2026 federal figures used in the tax cushion
- Self-employment tax: 12.4% Social Security tax plus 2.9% Medicare tax on 92.35% of net profit, with a Social Security wage base of $184,500. Half of the SE tax is deducted when estimating income tax.
- Federal income tax: 2026 basic standard deduction and rate tables from Rev. Proc. 2025-32. Additional Medicare Tax of 0.9% applies above the usual thresholds if income is high enough.
- IRS self-employment tax page and 2026 Form 1040-ES (PDF).
- Revenue Procedure 2025-32 (PDF) — 2026 income-tax rate tables and standard deduction amounts.
Log the income and expenses behind the rate
The 1099 Freelancer Tax Tracker ($12) is a spreadsheet for 1099 income, expenses, and quarterly tax planning over the year. This page only sets a planning rate.
Related calculators
Frequently asked questions
How is the freelance hourly rate figured?
First the calculator finds how much annual revenue you need: the profit required to hit your goal, plus business expenses, then grossed up if you added a buffer. It divides that revenue by billable hours. Billable hours are (52 − weeks off) × hours in a working week × utilization (the share of those hours you expect to bill).
What is the difference between a take-home goal and a profit goal?
A take-home goal is money left after the tax cushion you selected. A net-profit goal is profit after business expenses but before tax; the tax figures are then shown separately so you can see what might remain. Neither is a substitute for a tax return.
What does the 2026 tax cushion include?
“SE tax only” estimates 2026 self-employment tax (and Additional Medicare Tax if it applies) using current IRS rates and solves for the profit that leaves your take-home goal after those taxes. “SE tax + federal income tax” also estimates federal income tax after the deductible half of SE tax and the 2026 basic standard deduction, using the rate tables in Rev. Proc. 2025-32. Neither option includes state or local tax, the qualified business income deduction, credits, or itemized deductions. For a more detailed estimate, use the self-employment tax calculator.
Why isn’t utilization 100%?
Proposals, admin, unpaid conversations, and slow weeks are normal. If you assume every working hour is billed, the hourly rate will be too low to hit the annual goal once that unpaid time shows up.
How should I use the day rate or weekly figure?
The day rate is eight times the hourly rate, and the weekly figure is the hourly rate times billable hours in a week (hours per week × utilization). They are planning numbers. A fixed project fee can start from hours × rate, then you should still look at the actual scope.
Is this the rate I have to charge?
No. It is the rate that supports the goal, expenses, time off, and tax cushion you entered. Clients may pay more or less in your market. It is not a salary survey and not legal or tax advice.