A salary is not a freelance rate
An employee’s compensation may include employer-paid payroll taxes, health coverage, retirement contributions, equipment and paid leave. Freelancers also spend time winning and managing work. A sustainable rate needs to cover those differences.
Before sending a proposal
- Define the scope and number of revisions.
- Estimate project hours using past work when available.
- Add a contingency for uncertainty.
- Clarify payment timing, deposits and late-payment terms.
Educational estimate only. This is not tax, legal, employment or pricing advice.
Published by RVR — Founder & Editor, IQlatorMethodology reviewed September 24, 2026Educational information
Price freelance work for billable and nonbillable time
A sustainable freelance rate must cover more than desired take-home pay. Independent workers may need to fund benefits, software, equipment, taxes, insurance, unpaid administration, marketing and time off. Dividing an annual target by every working hour can therefore understate the required rate.
How to use this page
The calculator combines the selected income target and annual business costs, adds the chosen reserve, and divides by realistic billable hours. Billable capacity should exclude vacation, holidays, professional development, sales work and routine administration.
Practical exampleSomeone working 1,800 hours a year may only bill 1,100 of them. Spreading the required annual revenue across 1,100 hours produces a more realistic floor than dividing by all hours worked.
Inputs to verify
- Estimate billable utilization from actual calendars when possible.
- Include platform fees and payment delays in cash-flow planning.
- Test the rate with fewer clients or more unpaid work than expected.
Common questions
Is the result the price I must charge every client?
It is a planning floor based on your assumptions. Market position, scope, risk and value may justify a different project price.
Should taxes be included?
Use a qualified adviser for your situation, but do not confuse business revenue with personal take-home income.
Methodology and sources: Planning estimate only; employment classification, taxes and contracts require professional guidance.