Stop underpricing. Calculate what you're actually worth per hour — from your income goal, real expenses, taxes, and the hours you can actually bill.
// 1. Income target
// 2. Expenses
// 3. Time
// the math doesn't lie
Your $80,000 goal needs at least $0/hr.
Most freelancers think they need much less. Here's what each margin level actually costs in hourly, daily, weekly, and monthly project terms.
// 0% margin
Survival
$0/hr
Day: $0
Week: $0
Mo. project: $0
// 15% margin
Sustainable
$0/hr
Day: $0
Week: $0
Mo. project: $0
// 30% margin
Healthy
$0/hr
Day: $0
Week: $0
Mo. project: $0
// 50% margin
Premium
$0/hr
Day: $0
Week: $0
Mo. project: $0
Billable hours / year
0
Gross income required
$0
// reality check — why your minimum is higher than you think
If you charge $0/hr, you need to bill 0 hours/year just to hit your target. Most freelancers UNDERCHARGE by 30–50%. Your minimum is the floor, not the ceiling.
Tax — every dollar gets cut by your bracket the moment you earn it. A 30% rate means $0.30 of every dollar leaves before you see it.
Time — only ~50–60% of your work hours are billable. Admin, sales, proposals, learning, and bookkeeping pay you nothing.
Buffer — vacation, sick days, slow months, and client gaps do not pay you. Build that gap into the rate or eat it later.
// step 01
Plug in your real numbers
Income goal, real expenses, tax rate, and the hours you can actually bill — not the hours you sit at a desk.
// step 02
See your 4 rate tiers
Survival rate (break-even), sustainable (15%), healthy (30%), and premium (50%). Pick the tier that matches your goals.
// step 03
Stop quoting too low
Use the rate. Quote daily, weekly, or monthly project rates that match. The math protects you from yourself.
Get the freelance pricing playbook — free 12-page PDF
How to position your rates without losing clients. Scripts for raising prices, anchoring techniques, and the 3 phrases that double close rates on quotes.
// got it · check your inbox
// FAQ
Why is my minimum rate higher than I expected?
Because the math is honest. Tax takes a chunk before you keep anything, only ~50% of your work hours are actually billable, and you do not get paid for vacation, sick days, or slow months. A "survival" rate that ignores those realities is the #1 reason freelancers burn out.
What tax rate should I use if I'm not in the US?
Use your effective combined rate — federal/national + state/provincial + self-employment/social charges. UK self-employed: 25–35%. Canada: 25–35%. Australia: 30–40%. EU varies wildly (20–50%). When in doubt, overshoot — extra money is never the problem.
Should I really only bill 5 hours a day?
Yes. Studies of professional services consistently show 4–6 hours of true billable focus per day is the realistic ceiling for sustained quality. The rest of your day is sales, admin, learning, breaks, and recovery. Pretending otherwise is how rates get set too low.
What's the difference between "survival" and "healthy" rates?
Survival (0% margin) covers your goal exactly — one bad month and you fall behind. Healthy (30% margin) builds a buffer for slow seasons, equipment upgrades, retirement, and growth investment. Premium (50%) funds compound wealth-building. Most full-time freelancers should aim for healthy or above.
How do I justify the rate to clients?
You don't quote rates — you quote outcomes. The hourly rate is your internal floor; clients see project pricing, retainers, or value-based fees built backward from this rate. Grab the pricing playbook above for the exact scripts.
// Estimates based on standard freelance economics. Adjust for your specific tax situation, location, expenses, and risk tolerance. Not tax advice.