Why we built this
Most "hourly rate calculators" online divide a target salary by 2,080 hours. That number is wrong for virtually every freelancer.
It ignores self-employment tax (15.3%, both sides of payroll), the QBI deduction, non-billable administrative time, vacation days, and business expenses. The result is that freelancers routinely underprice by 40–60% — and wonder why they're working full-time hours for part-time income.
We built FreelanceHourly.com to fix that with a calculator that uses the actual IRS formula, not a rough estimate.
How the calculation works
Our calculator uses a binary search algorithm to find the exact gross revenue needed to reach your target net income after:
- Self-employment tax (15.3% on 92.35% of net earnings, per IRS rules)
- The SE tax deduction (50% of SE tax is deductible)
- The Qualified Business Income (QBI) deduction (20% of qualified income)
- The 2026 standard deduction ($16,100 for single filers)
- Progressive federal income tax brackets (2026 projected rates)
- Your annual business expenses
From the required gross revenue, we derive your minimum rate. We then apply your profit margin buffer to arrive at your recommended rate — the number you should actually quote to clients.
What we don't do
This calculator does not account for state or local income taxes, which vary significantly by location. It does not provide personalized tax advice. For your specific situation, please consult a certified public accountant (CPA) or tax professional.
Free, forever
FreelanceHourly.com is and will remain free to use. We earn revenue through contextually relevant affiliate partnerships (like Bonsai for invoicing) and advertising. We only recommend tools we'd use ourselves.
Contact us
Questions, feedback, or found an error in the math? We'd love to hear from you. Send us a message →