What should I charge for freelancing?
Most freelancers set their rate by guessing or copying someone else. The math should run the other way: start from the take-home income you actually need, add self-employment tax, income tax, software, insurance, and unpaid admin time — then see what each billable hour really has to earn.
| Gross revenue you need to bill | – |
| Business expenses | – |
| Self-employment tax (15.3%) | – |
| Federal income tax (est.) | – |
| State income tax (est.) | – |
| Retirement savings | – |
| Your take-home income | – |
For projects: estimate the hours the job will take, multiply by your hourly rate above, then add materials (with markup) and a 10–25% buffer for overruns.
Estimates use 2025 federal brackets, the standard deduction, and real 2025 state brackets (single-filer). Local/city taxes, credits, and state-specific deductions are not included. Not tax advice.
What to count as expenses
For freelancing, annual business expenses typically include software subscriptions, a laptop upgrade every few years, health insurance, coworking or home-office costs, accounting fees, and marketing. Add up a full year of these — using a rough annual total is far better than entering zero and pricing your overhead at nothing.
Be honest about billable hours
A full-time freelancer rarely bills 40 hours a week. Between proposals, invoicing, email, and finding the next client, 20–28 truly billable hours a week is normal. If you assume 40, your rate will come out dangerously low.
Freelancer pricing FAQs
Why is my calculated freelance rate so much higher than my old salary ÷ 2080?
A salary comes with employer-paid payroll tax, benefits, paid time off, and a full pipeline of work. As a freelancer you cover both halves of Social Security and Medicare (15.3% self-employment tax), buy your own benefits, and only get paid for billable hours — typically 50–70% of your working time. Doubling your old hourly wage is a common rule of thumb for a reason.
Should I charge hourly or per project as a freelancer?
Per project usually earns more once you are fast at the work, because you keep the gains from your own efficiency. Use your calculated hourly rate internally: estimate the hours a project will take, multiply by your rate, then add a 10–25% buffer for revisions and scope creep.
How often should I raise my freelance rates?
Review at least once a year, and any time you are booked more than about 80% full for two months straight. Consistent overbooking is the market telling you that you are underpriced.