Freelance Rate Calculator – Reverse-engineer your real hourly rate

Summary: This tool calculates a realistic freelance hourly rate by factoring in desired net income, self-employment taxes, overhead, and billable efficiency. It adjusts for unbillable time and provides tax estimates without requiring signup or data collection.

What it does

It works backward from your target net income and billable hours to compute an accurate hourly rate, accounting for taxes, expenses, and actual billable time versus total work hours.

Who it's for

Freelancers and consultants who want to set rates that reflect true costs and billable realities rather than salaried assumptions.

Why it matters

It prevents undercharging by incorporating overhead and unbillable time, ensuring rates cover all expenses and taxes.