Freelance Rate Calculator
Calculate your ideal hourly rate based on desired income, expenses, taxes, and billable hours.
Your Goals & Situation
What you want in your pocket after taxes
Software, equipment, home office, etc.
Typical: 50-70%. Rest goes to marketing, admin, learning.
Note on Tax Estimates
This calculator provides estimates based on 2026 tax brackets. Actual taxes depend on deductions, credits, and your specific situation. Consult a tax professional for accurate planning.
Your Rates
Annual Revenue Needed
Time Analysis
Want to automate your invoicing and expense tracking? Book a free consultation
How to Set Your Freelance Rate
The 2-3x Rule
A common rule of thumb: your freelance rate should be 2-3x what you'd earn hourly as an employee. This accounts for self-employment taxes, lack of benefits, unbillable time, and business risk. If you made $50/hour as an employee, consider $100-150/hour as a freelancer.
Don't Forget Hidden Costs
- Health benefits: No employer-paid benefits (budget $200-500/month)
- Retirement: No employer RRSP matching
- Paid time off: Vacation, sick days, statutory holidays - all unpaid
- Equipment: Computer, software, office supplies
- Professional development: Training, conferences, certifications
Billable Hours Reality
If you work 40 hours/week, you won't bill 40 hours. Time goes to:
- Finding clients (marketing, networking, proposals): 20-30%
- Admin (invoicing, emails, bookkeeping): 10-15%
- Professional development: 5-10%
Most freelancers bill 50-70% of their working hours. New freelancers may bill even less.
Frequently Asked Questions
Automate Your Freelance Business
AI can handle invoicing, expense tracking, client communications, and more.