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Your rate should fund your life—not just fill your calendar.

Build a defensible freelance rate from the full picture: take-home pay, taxes, overhead, benefits, non-billable time, time off, and room to grow.

Private by defaultTransparent formula7 currencies
RATE SIGNALSustainable

Recommended target

$112/hr
Floor$96Day rate$89640h project$5.2k
+
$18,720protected from underpricing
01

BUILD YOUR RATE PLAN

One number is not a pricing strategy.

See your break-even floor, confident target, and high-risk rate—then turn them into practical quotes.

INPUTS

Build from your real year

● Saved locally
Project quote settings +
YOUR TARGET RATE
$139/hour

Built to produce $161,863 across 1,166 realistic billable hours.

On plan
Floor$118/hr

Covers the plan, no resilience margin.

Target$139/hr

Default for well-scoped client work.

High-risk$187/hr

Reference for urgent or uncertain work.

8-hour day$1,111
32-hour week$4,444
64-hour retainer$8,4435% commitment adjustment
40-hour project$6,388Includes 15% scope reserve
WHERE THE REVENUE GOES$161,863 / year
$13,489 / month
Take-home $80KTax $34KBenefits $11KCosts $13KResilience $24K
CURRENT-RATE GAP$86,099 / year

At $65/hr, the plan is short by $74 for every billable hour.

Show calculation trail +
  1. Take-home + benefits$90,800
  2. Profit required before estimated tax$124,384
  3. + Annual business costs$13,200
  4. Revenue floor$137,584
  5. ÷ 85% after resilience margin$161,863
  6. ÷ 1,166 billable hours$139/hr

02

THE HIDDEN MATH

Salary ÷ 2,080 is the fastest route to undercharging.

Employees are paid through admin, holidays, training, and slow periods. Independent professionals must price those realities into fewer billable hours.

THE NAIVE WAY$38/hr

$80,000 divided by 2,080 working hours

Leaves no room for taxes, costs, or downtime.
THE FULL-COST WAY$92/hr

Income + tax + costs across 1,250 billable hours

Protects the business and the person doing the work.

Illustrative example only. Your plan should use your own effective tax rate, costs, and tracked capacity.

A RATE YOU CAN EXPLAIN

The formula, without the finance fog.

RatePilot works backward from what the business must produce, then divides that target by time you can actually invoice.

Review the methodology
  1. 1

    Fund the person

    Start with take-home income plus benefits and retirement—not a vague gross salary.

  2. 2

    Fund the business

    Add software, insurance, equipment, marketing, accounting, and one-off operating costs.

  3. 3

    Gross up for tax

    Translate the amount you want to keep into the profit required before estimated taxes.

  4. 4

    Use billable capacity

    Divide by workable client hours after admin, sales, time off, and the realities of a pipeline.

  5. 5

    Add resilience

    Keep separate rates for sustainability, growth, and work with unusual scope or urgency.

COMMON QUESTIONS

Before you send the quote.

Use the number as a decision aid, then apply market context and professional judgment.

What is a realistic number of billable hours?+

For many solo professionals, 50–70% of working time is billable after sales, admin, bookkeeping, learning, and gaps between projects. Use your own tracked average when possible.

Should my rate include taxes?+

Yes. Start with the amount you want to keep, then gross it up using an estimated effective tax rate. This calculator keeps taxes visible instead of treating them as an afterthought.

Is the recommended rate my final client price?+

Treat the floor as the minimum that makes your plan work. The target rate adds room for reinvestment. Urgent, uncertain, or high-value work may justify a higher project quote.

How should I price fixed-fee projects?+

Estimate the real delivery hours, include project management and revisions, then apply a scope reserve. Fixed fees should also reflect the value, risk, and rights transferred—not only time.

Does RatePilot store my financial information?+

No. Calculations happen in your browser. Settings are saved only on your device so you can return to your plan.

STOP GUESSING

Build the rate your next year needs.

Five minutes of honest inputs can change every proposal that follows.

Calculate my rate