Freelance Rate Calculator: Know Your Expenses To Know Your Minimum

These two freelance rate calculator tools help you identify the all-in expenses associated with working independently vs. working in a salaried position.

For a fast result, start with this simple version of the calculator with just one input.

Does the result seem high to you? Then you should read this article that explains the expense formula we use to help you set freelance rates.

Set Freelance Rates By Starting With This Expense Formula

That will also help you complete the advanced calculator below so you can input your own estimates for each variable.

This freelance rate calculator considers all the costs of going freelance — the salary equivalent plus all the additional expenses an employer would bear for having you on the payroll.

Many of these expenses may apply only to workers in the U.S. However, if any of the expenses don’t apply to you (or are higher in your country), you can enter zero or another number.

The variables included in this formula include:

A salary equivalent. You should find the average salary data for work similar to yours from places like Glassdoor.
Saving for retirement as a freelancer.
Health insurance expenses as a freelancer.
Paid time off including holidays, vacations, sick days and personal days,
Marketing and sales expenses for your freelance business,
Overhead expenses,
Freelance taxes,
Profit goals for your freelance business.

Put another way, not all the work on your business is client facing, but all of the work on your business must be built into the prices you charge clients.