Start with the annual amount you need after business costs and estimated tax.
US tax-aware pricing | 2025 and 2026
Freelance rate calculator
Work backward from the annual income you want to keep. The result covers entered business expenses, current federal income and self-employment tax, optional state tax, and the billable hours you can realistically sell.
Income target
Use US annual amounts and realistic billable time.
Required freelance hourly rate2026 estimate
$0.00Based on 0 annual billable hours and your entered target, costs, and tax assumptions.
Required day rate$0Eight billable hours
Required annual gross$0Total client revenue target
Average monthly gross$0Annual gross divided by 12
Estimated annual tax$0Federal plus optional state estimate
| Target annual take-home | $0 |
|---|---|
| Annual business expenses | $0 |
| Annual billable hours | 0 |
| Required annual client revenue | $0 |
This is a financial floor under the entered assumptions, not a market quote. Add a margin for sales time, late payment, scope risk, equipment replacement, and profit before using it in a proposal.
Reverse calculation
The calculator solves for gross revenue first.
A salary divided by 2,080 assumes every working hour is billable and ignores expenses, employer-paid payroll tax, and unpaid time. This calculator repeatedly tests annual 1099 revenue through the tax engine until modeled take-home reaches your target, then divides that revenue by realistic billable hours.
Use billable hours and weeks, not all hours spent running the business.
The reverse solver uses the selected year's federal brackets and self-employment tax.
Treat the result as a floor, then price for risk, demand, value, and profit.
Questions
Freelance rate FAQ
Your sustainable floor and the market price are different. A client may pay more for scarce expertise, speed, reduced risk, or a valuable outcome.
How many billable hours should I use?
Use hours you can invoice, not total working time. Proposals, marketing, bookkeeping, professional development, internal administration, and gaps between projects reduce billable capacity.
Why include W-2 income?
A side gig sits on top of other taxable income. Additional freelance profit may enter a higher federal bracket, while W-2 wages can also use part or all of the Social Security wage base.
Should I quote the calculated hourly rate?
Not automatically. Use it as a minimum financial benchmark. Project scope, revisions, intellectual property, urgency, client size, market rates, and value can justify a different hourly, day, project, or retainer price.