Freelance Rate Calculator

Setting Your Freelance Rate: Don't Undervalue Yourself

Transitioning from a salaried employee to a freelancer requires a different mindset about your income. You can't simply charge your old hourly rate. You are now a business and must cover your own expenses.

Costs to Factor In:

• Self-Employment Taxes: You're responsible for both the employee and employer portions of Social Security and Medicare.
• Business Expenses: Software, hardware, marketing, office space, etc.
• Insurance: Health, liability, and disability insurance.
• No Paid Time Off: You need to build vacation, sick days, and holidays into your rate.
• Non-Billable Hours: Time spent on marketing, admin, and finding clients.

This tool helps you calculate a sustainable hourly rate that covers all your costs and ensures profitability.