Most new freelancers price by guessing, then wonder why a “good” hourly rate still leaves them short at tax time. The fix is doing the math once, properly, instead of re-guessing every quote.
Work backward from your target income
Start with what you actually want to take home, then add back everything that isn’t billable: admin time, marketing, sick days, and self-employment tax.
| Line item | Example |
|---|---|
| Target take-home | $60,000/yr |
| Billable hours/week | 25 (not 40) |
| Self-employment tax buffer | +15% |
| Resulting hourly rate | ~$55/hr |
What usually gets missed
- Unpaid admin time — invoicing, scoping calls, revisions
- Software and subscriptions that support the work
- Time off that a salaried job would pay for automatically
The number will feel high the first time you say it out loud. Say it anyway — it’s the number that already accounts for the parts of the job nobody bills for.
