Determine your true hourly rate based on lifestyle goals, taxes, and hidden unbillable hours.
Charge this for every billable hour to hit your goal.
How many billable minutes to pay for:
Convert your calculated hourly rate into flat project fees, automatically factoring in the "Freelancer Underestimation Buffer".
Calculating a freelance rate isn't just taking a salary and dividing by 2080 hours. You have to account for taxes, expenses, and unbillable time.
Profit = Target Take-Home / (1 - Tax Rate)
Gross Revenue = Profit + Business Expenses
Billable Hrs = (52 - Weeks Off) × (Hrs per Week × Billable %)
Rate = Gross Revenue / Billable Hrs
Most employees get paid for 40 hours a week, even when they are chatting at the watercooler, answering internal emails, or doing training.
As a freelancer, you only get paid when actively doing client work.
Industry average for freelancers is 50% to 60% billable efficiency. If you assume you will bill 100% of your time, you will inevitably underprice yourself and burn out.