Freelance Rate Calculator
Convert your target salary to a realistic freelance hourly rate accounting for unpaid time, self-employment tax, and business expenses.
FAQ
Why is the rate so much higher than my W-2 salary?
W-2 employees get benefits paid by employer (health, FICA share, 401k match, PTO, equipment). Freelancers cover all of it themselves. The freelance equivalent of an $80k W-2 salary is usually $120k-$160k of billings.
What's self-employment (SE) tax?
15.3% (Social Security 12.4% + Medicare 2.9%) on net self-employment income, up to the SS wage base. As an employee you pay half (7.65%); as a freelancer you pay both halves.
Can I lower my SE tax?
An S-corp election with reasonable salary + distributions can reduce SE tax above ~$80k profit. Talk to a CPA — it adds complexity.
Are my hours realistic?
For most freelancers, 50-65% of work hours are billable. The rest is sales, admin, and unpaid prep. 25% admin is moderate.
Disclaimer. Estimates only. Tax rules for self-employment vary; consult a CPA. Doesn't model business structure (LLC, S-corp), pass-through deduction, or quarterly estimated tax requirements.