📋 In This Guide
Why "Just Guess a Number" Underprices Freelancers
Many new freelancers set their rate by comparing to a rough market average or simply picking a number that feels reasonable — without accounting for their actual expenses, tax burden, or the fact that not every working hour is billable. This routinely leads to underpricing: working full-time hours while earning well below the income actually planned for.
Income-Backed Pricing
Start from your actual income goal, not a guess
Real Expenses Covered
Software, equipment and marketing costs included
Realistic Billable Hours
Accounts for time that genuinely can't be billed
Billable vs Total Working Hours
This is the single most underestimated factor in freelance pricing. Out of a typical 8-hour working day, most freelancers only bill for 4 to 6 hours — the rest goes to finding clients, replying to emails, invoicing, learning new skills, and general administration. Assuming all 8 hours are billable is one of the most common reasons freelancers end up earning far less than planned.
The Formula Explained
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Create a professional invoice with all mandatory fields for freelance work.
Worked Example
5 Pricing Mistakes New Freelancers Make
Frequently Asked Questions
Add your desired income to business expenses, gross up for taxes, then divide by actual billable hours per year — not total working hours. This calculator automates the full calculation.
Most freelancers only bill 60-75% of actual working time — the rest goes to finding clients, invoicing, learning, and administration.
Yes. Software, equipment, workspace costs, and marketing are real business costs your rate needs to cover on top of personal income.
Many experienced freelancers plan for 4-6 truly billable hours out of an 8-hour day. New freelancers often overestimate this, leading to underpricing.
Not necessarily. This gives a baseline minimum — many freelancers charge more for rush work, specialized expertise, or demanding clients, treating the rate as a floor.
Subtract planned vacation, sick days, and holidays from 52 weeks before calculating working days — ensuring your rate reflects realistic annual availability.
No. All calculations happen instantly inside your browser using JavaScript. Nothing you enter is uploaded, logged, or stored on any server.