Question 1

Why does this calculator assume 30% for taxes?

Accepted Answer

Self-employed individuals pay both employer and employee portions of Social Security/Medicare (15.3%), plus federal and state income taxes. 30% is a conservative estimate — your actual rate may be higher or lower depending on your state and deductions.

Question 2

What counts as billable hours?

Accepted Answer

Only hours you can directly bill to clients. Admin, marketing, invoicing, learning, and networking are non-billable. Most freelancers realistically bill 20-30 hours per week, not 40.

Question 3

Should I charge hourly or project-based?

Accepted Answer

Project-based pricing is often more profitable because it rewards efficiency. Use your hourly rate as a baseline, estimate the project hours, then add a 20-30% buffer for scope creep.

Question 4

How do I raise my rates with existing clients?

Accepted Answer

Give 30-60 days notice, explain the value you provide, and frame it as a market adjustment. Most clients expect annual rate increases of 5-10%. If a client leaves over a reasonable increase, they weren't a good long-term fit.

Freelance Rate Calculator

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