Why freelance rates look high
Dividing a salary by 2,080 badly underprices freelance work. Employees get paid holidays and vacation, employer-paid benefits and the employer half of payroll taxes, and every hour they work is paid. Freelancers cover all of that themselves and spend a large share of their time on unbilled work: finding clients, admin, invoicing and learning. Twenty to thirty billable hours a week is typical for a full-time freelancer.
Replacing an $80,000 salary with $12,000 of benefits and $6,000 of expenses, at 25 billable hours for 46 weeks, needs about $90 an hour. That is more than twice the $38 an employee on the same salary earns per paid hour.
Common questions
How do I calculate my freelance rate?
Add the salary you want, benefits, expenses and extra taxes, then divide by realistic billable hours per year.
How many billable hours do freelancers work?
Often 1,000 to 1,500 a year, well below the 2,080 hours of a full-time job.
Should I charge by project instead?
Many freelancers do once they know their hourly floor; the hourly rate stays useful for checking project quotes.
This calculator gives estimates for planning. Real returns, rates and prices change, so treat the result as a guide rather than a promise. Read how we build and check our calculators.