Commercial Demolition Cost Calculator

Freelance Hourly Rate Calculator

Your Recommended Hourly Rate:

function calculateFreelanceRate() { var salary = parseFloat(document.getElementById('desiredSalary').value); var expenses = parseFloat(document.getElementById('businessExpenses').value); var hoursPerWeek = parseFloat(document.getElementById('billableHours').value); var vacation = parseFloat(document.getElementById('vacationWeeks').value); var tax = parseFloat(document.getElementById('taxRate').value); if (isNaN(salary) || isNaN(expenses) || isNaN(hoursPerWeek) || isNaN(vacation) || isNaN(tax)) { alert("Please fill in all fields with valid numbers."); return; } var totalWeeks = 52 – vacation; if (totalWeeks <= 0) { alert("Vacation weeks cannot exceed 52."); return; } var annualPreTaxSalary = salary / (1 – (tax / 100)); var totalNeeded = annualPreTaxSalary + expenses; var totalAnnualHours = totalWeeks * hoursPerWeek; var hourlyRate = totalNeeded / totalAnnualHours; document.getElementById('hourlyValue').innerHTML = "$" + hourlyRate.toFixed(2); document.getElementById('breakdownText').innerHTML = "To net $" + salary.toLocaleString() + " after " + tax + "% tax and pay for $" + expenses.toLocaleString() + " in expenses, you must earn a total of $" + Math.round(totalNeeded).toLocaleString() + " per year. Based on working " + totalWeeks + " weeks at " + hoursPerWeek + " billable hours per week, your target rate is set."; document.getElementById('rateResult').style.display = "block"; }

---

How to Set Your Freelance Hourly Rate

Transitioning from a traditional 9-to-5 job to freelancing requires a fundamental shift in how you view your income. You are no longer just an employee; you are a business owner. This means your hourly rate must cover more than just your take-home pay.

The Components of a Profitable Rate

• Desired Net Income: This is the amount of money you want in your bank account at the end of the year to cover your personal cost of living.
• Self-Employment Taxes: Unlike traditional employment where your employer pays half of your FICA taxes, freelancers are responsible for the full amount, plus federal and state income taxes.
• Business Overhead: Software subscriptions (Adobe Creative Cloud, Zoom), hardware, office space, marketing, and professional insurance must be accounted for.
• Billable vs. Non-Billable Hours: You cannot bill 40 hours a week. Admin work, invoicing, and prospecting are non-billable. Most successful freelancers aim for 20-25 billable hours per week.

A Realistic Example

Let's say you want to earn a $65,000 salary after taxes. You have $6,000 in annual business expenses and live in an area where your total tax burden is roughly 25%. If you take 4 weeks off per year and can maintain 25 billable hours per week:

1. Adjusted for tax: You need $86,666 gross income.
2. Plus expenses: Total needed is $92,666.
3. Total hours: 48 weeks × 25 hours = 1,200 hours.
4. Hourly Rate: $92,666 / 1,200 = $77.22 per hour.

Why "Value-Based" Pricing Matters

While an hourly rate calculator provides a vital "floor" for your pricing, consider value-based pricing for high-impact projects. If a website you build generates $50,000 in revenue for a client, charging $5,000 (regardless of hours) is often more appropriate than billing a flat hourly rate that might only total $2,000. Use this calculator to ensure you never go below your break-even point.