Freelance and service hourly rate calculator
Work out what to charge per hour as a freelancer or service business. Start from the yearly income you want, add your business expenses and self-employment tax, and divide by the hours you can really bill.
Help: how to use it and FAQ
How to use it
- You enter the data
- Smallo works it out
- You get the result
- Enter the yearly income you want and your yearly business expenses.
- Set the weeks and hours you work and the share of hours you can bill.
- Read the hourly rate, the day rate and the revenue you need.
Frequently asked questions
Why can't I bill 40 hours a week?
Part of your time goes to admin, sales, invoices and travel. Many freelancers bill 50% to 70% of the hours they work, so the calculator only counts your billable share.
What is self-employment tax?
It is the Social Security and Medicare tax for people who work for themselves: 15.3% on 92.35% of net earnings. An employer pays half of it for employees, so freelancers need to build it into their rate. Income tax is separate.
Is this rate final?
It is the minimum that meets your goals. Compare it with what clients in your field pay, and raise it for rush work or specialized skills.