Why "Salary × 2" isn't enough
Many new freelancers simply double their previous corporate salary to find an hourly rate. However, this often ignores the hidden costs of being your own boss: self-employment taxes, health insurance, specialized software, hardware upgrades, and the time spent on non-billable tasks like marketing and accounting.
How it's calculated
Rate = (Goal + Exp) / (1 - Tax%) / (Hours × 52)
We calculate your total gross requirement by adding your desired profit to your expenses, then "grossing up" for taxes. This total is then divided by your actual billable hours.
Pricing Strategies
Should I use hourly or value-based pricing?
Hourly is great for maintenance work. For projects with high impact (like a brand identity), value-based pricing is often better as it decouples your time from the result's worth.
How many billable hours are realistic?
Most full-time freelancers find that 20-30 hours per week is the 'sweet spot' for billable work. The rest of the 40-hour week is consumed by business operations.
When should I raise my rates?
A good rule of thumb is to raise your rates by 10-20% once you are consistently booked at 80% capacity for 3 months.
Tax & Financial Disclaimer
Tax rates vary wildly by country and entity type (LLC, Sole Prop, etc.). This tool provides a simplified estimate. Always consult with a tax professional or accountant to ensure your rates cover your specific legal and financial obligations.