Find your minimum viable hourly rate. Factor in taxes, expenses, unpaid time, and profit target to set rates that actually sustain your business.
The #1 mistake: dividing desired salary by 2,080 hours (full-time equivalent). Freelancers only bill 40–60% of their time — the rest goes to admin, marketing, client calls, and learning. 25 billable hours/week is realistic for most solo freelancers.
Freelancers pay 15.3% SE tax PLUS income tax. Budget 28–35% total for US freelancers. Always set aside tax from every payment.
For every hour billed, expect 30–60 minutes of non-billable overhead. Factor this into your rate or you’ll work twice the hours for the same pay.
Software, equipment, insurance, coworking, training — quality freelance businesses typically spend $5,000–$15,000/year just to operate.
Add 15–25% profit margin above costs. This covers slow months, scope creep, late payments, and business reinvestment.
Web/App Development: $75–$200/hr. Graphic Design: $50–$150/hr. Copywriting: $50–$150/hr. Digital Marketing: $60–$150/hr. Consulting: $100–$300/hr. If your calculated minimum rate is above market, you need to reduce expenses, target better clients, or increase specialization.
Calculate project invoices with hours, rates, taxes and discounts.
Was your project actually profitable? Calculate true margin.
Estimate quarterly self-employment taxes to avoid surprises.
Compare freelance rate vs employed salary equivalent.