About ContractorRateCalc
ContractorRateCalc exists because too many freelancers underprice their work. They guess at a number, copy what a friend charges, or take whatever the client offers — without ever calculating what they actually need to earn to cover their real costs.
The math is not complicated, but it is easy to get wrong. Most freelancers remember to include their income goal. Few remember to include both sides of self-employment tax. Fewer still include realistic health insurance premiums, retirement contributions at a level that actually builds wealth, and annual business expenses.
Our calculator makes every input explicit. Enter your real numbers and get an honest minimum rate — what you must charge to cover your costs — plus a recommended rate with a profit margin built in.
- Federal self-employment tax (15.3% on 92.35% of net income)
- Annual health insurance premiums (your input)
- Retirement contributions (% of income)
- Business expenses (your input)
- PTO-adjusted billable hours
- Minimum and recommended hourly rates
This tool is free and will remain free. All calculations happen in your browser. We do not store your inputs, sell your data, or require an account. We are supported by Google AdSense display ads.
Not financial or tax advice. For your specific tax situation, consult a CPA or enrolled agent.