What this calculator does
Many new freelancers take a job's hourly pay and charge the same, then find that taxes, fees, unpaid hours and time off eat much of it. This calculator works backward from the take-home pay you want for the year. It adds your business costs, 2026 self-employment tax and federal and state income tax, platform and payment fees, and spreads the total over the hours you can actually bill, to give an hourly rate, a day rate and a price for a sample project.
How the rate is worked out
- Billable hours = (52 − weeks off) × working hours a week × the share you can bill. 46 weeks of 40 hours at 60% is 1,104 hours, not 2,080.
- Taxes: self-employment tax (15.3% of 92.35% of profit, with the Social Security part up to $184,500 in 2026), federal income tax with the 2026 brackets and standard deduction, and your state's income tax, the same simplified model as the creator tax calculator.
- Fees: a platform service fee and payment fees come out of what clients pay, so the rate is grossed up for them.
Example: to keep $60,000 a year in California as a single filer with $6,000 of business costs, 6 weeks off, 40-hour weeks, 60% billable and a 10% platform fee, you would bill about $94,600 a year, or about $85.66 an hour. That is $32.61 of take-home for every hour worked.
Platform fees
Freelance marketplaces take a service fee from what the client pays. Upwork shows your freelancer service fee before you send a proposal or accept an offer, and other platforms publish theirs in their help pages; the calculator uses the percentage you enter. For your own clients enter 0%, and add any payment or withdrawal fees.
Taxes for freelancers
No one withholds tax from freelance pay, so the IRS expects quarterly estimated tax payments when you will owe $1,000 or more for the year. Freelance income is reported on Schedule C, and business costs lower the profit that is taxed. The estimate assumes freelancing is your only income; it is general information, not tax advice.
Frequently asked questions
How much should I charge per hour as a freelancer?
Enough to cover the take-home pay you want, your business costs, taxes, fees and unpaid time. Enter those here; the result is the lowest rate that meets your goal, and you can charge more for experience or demand.
How do I turn a salary into a freelance rate?
Enter the salary's take-home pay as your goal, add the costs an employer would have paid, such as health insurance and equipment, and set realistic billable hours. The 1099 vs W-2 calculator compares the two directly.
Do Upwork and Fiverr fees come out of my rate?
Yes, the platform keeps its service fee from what the client pays, so to keep the same money your listed rate must be higher. The calculator grosses up the rate for the fee you enter.
What day rate should I charge?
The calculator multiplies the hourly rate by 8 billable hours. Many freelancers also price by project: estimate the hours and multiply by your hourly rate.