Find the minimum rate you must charge to cover all expenses, taxes, and savings goals.
Monthly Living Expenses
Monthly Business Expenses
Goals and Schedule
SE tax is 15.3% plus income tax. 25-30% is a typical blended estimate.
$0
Minimum Break-even
$0
Target +10% buffer
$0
Premium Aim for this
Total annual requirement (gross)
Annual billable hours
This tool provides estimates for educational purposes only. Not financial or tax advice. Neither MayoCalc nor Cook Media Systems assumes any liability. See our Disclaimer and Terms.
Why Freelance Rates Must Exceed Equivalent Employee Pay
As a freelancer you pay both halves of Social Security and Medicare (15.3% SE tax), fund your own health insurance and retirement, and have no paid time off. Most freelancers also only bill 50-60% of available hours - the rest goes to admin, marketing, and invoicing. Your rate must reflect all these hidden costs.
What is a realistic billable hours estimate?
Plan on 20-25 billable hours per week until your pipeline is established. Admin, marketing, and client communication consume the rest.
How do I account for self-employment taxes?
SE tax is 15.3% on net earnings plus your federal and state income tax. A blended 25-30% effective rate is typical for $60K-$120K annual net profit.
Should I charge different rates to different clients?
Yes. The calculated rate is your floor - never go below it. Charge more for specialized work, rush projects, or high-value clients.