Freelance Rate Calculator

What this tool does

Calculates your freelance hourly, day, and project rates based on desired after-tax income, expenses, billable hours, vacation, utilization, and buffer. Shows project minimums for 10h, 20h, 40h. Rough estimator; not tax advice. Not AI-powered.

When to use it

• Setting your freelance rate for the first time or revising it
• Checking if your current rate covers income goals and expenses
• Deciding project minimums for short engagements

Inputs explained

• Desired annual income (after tax) – What you want to take home.
• Annual expenses – Business and personal expenses that come out of income.
• Billable hours per week, vacation weeks – How much you can actually bill.
• Utilization rate – Share of working hours that are billable. See utilization.
• Buffer % – Cushion for scope creep and unpaid work. See buffer.

How to use it

1. Enter desired income, expenses, billable hours, vacation, utilization, and optional buffer.
2. Click Calculate. Review hourly, day, and project minimums.

Common mistakes

• Assuming 100% utilization (70% is often optimistic)
• Forgetting to add buffer for scope creep and non-billable time

Use it with AI

This tool is not AI-powered. It is a calculator. You can use the results with an AI assistant in these ways:

• Paste your rates and ask for a one-paragraph explanation to use in client proposals.
• Ask an AI to suggest 5 ways to increase billable hours or reduce expenses.
• Use the AI Toolkit and Founder Ops AI Workflow for pricing and ops.

Explore the AI Toolkit and Founder Ops AI Workflow for more.

Related tools

• Project Pricing Calculator
• Salary vs Freelance Comparator
• Resume Bullet Rewriter
• Cold Outreach Email Draft

Related glossary terms

• Utilization rate
• Buffer
• Deposit

Related pages

• AI Hub
• AI Toolkit
• Career
• Project Pricing Calculator
• Salary vs Freelance Comparator
• Break-even Calculator
• Loan / Debt Payoff Calculator
• Employee vs Contractor Calculator

FAQ

What is utilization rate?

The share of your working hours that are billable. Non-billable time includes admin, marketing, learning.

Is this tax advice?

No. This is a rough estimator. Consult a tax professional.

Why project minimums?

Short projects often cost more per hour due to context switching. Minimums help you price them.