Use this freelancer rate calculator to quickly determine how much you need to charge per hour to meet your annual income goals. You can easily customize the calculator with your business expenses, income tax rate, and the number of hours you expect to work each year.

Instructions For The Freelance Hourly Rate Calculator

Follow these steps to compare total earnings of a contractor to an employee:

Enter Your Income Goal:

• Input your desired annual income in the “Desired Annual Income Goal” field.

Estimate Your Expenses:

• Enter your total estimated business expenses for the year in the “Estimated Business Expenses” field.
• Optionally, you can also enter any personal expenses to see how much your rate needs to cover those as well.

Select Your Tax Rates:

• Choose your income tax rate from the dropdown menu based on your estimated income bracket.
• The self-employment tax rate is pre-filled at 15.3% (for the US), but you can adjust it if needed.

Input Your Work Hours:

• Enter the number of billable hours you expect to work per week in the “Billable Hours per Week” field.
• Input the number of weeks you plan to work in the year in the “Weeks Worked per Year” field.

Calculate Your Rate:

• Click the “Calculate” button to determine the hourly rate you need to charge to meet your financial goals.
• The result will display your required hourly rate, along with a breakdown of how it was calculated.

Clear the Fields:

• To reset the calculator, click the “Clear All” button to start over.

Uses For The Salary To Daily Rate Calculator

• Set Competitive Rates: Determine the hourly rate you need to charge to ensure your freelancing is financially sustainable.
• Plan for Taxes and Expenses: Ensure that your rate covers all necessary taxes and business expenses, allowing you to achieve your income goals.
• Evaluate Project Pricing: Use the calculator to price individual projects by determining how many hours you’ll need to allocate and what rate will meet your income needs.
• Negotiate Freelance Contracts: Have confidence in your pricing during client negotiations by knowing exactly what you need to charge to reach your financial targets.
• Transition to Freelancing: If you’re moving from a salaried job to freelancing, use this tool to figure out the hourly rate needed to maintain or improve your current lifestyle.

Calculate Freelance Rate In Excel

Want to have more control over the inputs and calculations? We built an Excel file that does the same job as our freelance rate calculator above.

Download the freelance rate calculator in Excel.

Related Resources To Our Freelance Rate Calculator

Here are a few other free calculators we’ve built that are closely related to our contractor vs. employee salary calculator:

• Contractor vs. Employee Salary Calculator
• Salary Per Day Calculator
• Salary To Hourly Calculator
• Hourly To Salary Calculator
• Overtime Pay Calculator
• Contractor vs. Employee Salary Calculator

Disclaimer: This calculator is not legal advice. Please advise your HR or legal team first to determine the right work hour calculations and salaries depending on your type of organization, employee status, and labor laws in your state or country.