Question 1

Why is setting the right hourly rate so critical?

Accepted Answer

Setting the right rate is critical to your financial success. If you charge too little, you risk burnout and underpayment. If you charge too much, you may struggle to attract clients. This tool ensures you cover all expenses and taxes while maintaining a sustainable business model.

Question 2

How should I account for taxes as a freelancer?

Accepted Answer

Unlike employees, freelancers are responsible for both the employer and employee portions of Social Security and Medicare. This tool estimates those self-employment taxes to ensure your hourly rate covers your true tax burden.

Question 3

How should I account for non-billable hours?

Accepted Answer

Many freelancers forget to include non-billable hours like admin work, marketing, and client calls. When using this calculator, only enter the hours you actually intend to 'bill' to clients each week to ensure your rate covers all the time you spend on work-related activities.

Freelance Hourly Rate Calculator