Find your minimum viable hourly rate — and price projects profitably, not just competitively.
Annual Income Target ($)
$
Annual Business Expenses ($)
$
Billable Hours/Week
Weeks Off Per Year
Self-Employment Tax Buffer (%)
%
Minimum Hourly Rate
$0
To hit your income goal
Profitable Rate
—
+20% margin
Billable Hours/Yr
—
available to sell
Revenue Needed
—
gross billings
Monthly Target
—
invoice per month
Day Rate
—
8-hr project day
Half-Day Rate
—
4-hr engagement
Why Most Freelancers Undercharge
Freelancers often price based on what feels "fair" compared to a salary — then realize they're earning far less. A $100k salary employee costs ~$130k with benefits. You need to charge significantly more to cover gaps.
A 40-hour freelance week isn't 40 billable hours. Typical breakdown:
Client work: 20–25 hrs (billable)
Admin, invoicing, email: 5–8 hrs
Sales, proposals, networking: 5–8 hrs
Learning, tools, business dev: 2–5 hrs
Market rates by discipline (US, 2026)
Software Engineer: $100–$250/hr
UX/Product Designer: $75–$175/hr
Copywriter: $60–$150/hr
Marketing Consultant: $75–$200/hr
Accountant/Bookkeeper: $50–$125/hr
Video Editor: $50–$120/hr
Freelance Rate FAQ
Self-employed people pay both the employee and employer sides of FICA — 15.3% total (12.4% SS + 2.9% Medicare) on net earnings, plus federal and state income tax. Budget 25–35% of gross revenue for taxes and pay quarterly estimated taxes to avoid penalties.
Project pricing is usually better once you're experienced — you earn more when you work faster. Use your hourly rate to build project estimates, then quote a fixed price. If scope creep happens, charge for it. Hourly billing works well for ongoing retainers and ambiguous projects.
A retainer is a recurring monthly fee (e.g., $3,000/month) for a set number of hours or deliverables. Retainers give you predictable income and clients priority access. Aim for 2–3 retainer clients to cover baseline expenses, then use project work for growth.