Getting started
What Is Freelancing? A Complete Beginner's Guide
What freelancing is, how freelancers find work and get paid, what you can realistically earn, the pros and cons, and how to start with no money.
Freelance Hourly Rate Calculator
Find the lowest hourly rate that covers your costs, tax and platform fees, and still pays you what you need.
Your minimum hourly rate
$11.35
| Day rate (4 billable hours) | $45.42 |
| Billable hours per month | 80 |
| Clients pay you per month | $908.33 |
| Platform fees | −$181.67 |
| Work costs | −$60.00 |
| Tax set aside | −$66.67 |
| You keep | $600.00 |
This is your floor, not your price. Compare it with what others charge for similar work.
How to use the hourly rate calculator
- Enter how much you want to keep each month after costs and tax.
- Add your monthly work costs, such as internet, software and electricity.
- Set the tax you need to put aside and the platform fee you'll pay (use 0% for direct clients).
- Enter how many days you'll work and how many hours a day you can bill.
The result is your minimum hourly rate. Below it, freelancing doesn't pay for itself.
Why billable hours matter so much
Not every working hour is paid. Writing proposals, answering messages, learning, invoicing and waiting for feedback all take time. Many freelancers can only bill four or five hours on a full day, and beginners often bill fewer. If you assume eight billable hours a day, your rate will come out too low.
How the math works
- Money needed after platform fees = income goal ÷ (1 − tax rate) + work costs
- Money clients must pay = money needed after platform fees ÷ (1 − platform fee)
- Minimum hourly rate = money clients must pay ÷ billable hours per month
With the default numbers ($600 goal, $60 costs, 10% tax, 20% fee, and 20 days × 4 hours), the minimum rate is $11.35 an hour. Our guide on how much to charge as a beginner walks through this example step by step.
From minimum rate to real price
Your minimum is a floor, not a price. Before you set your rate:
- Check what freelancers with similar skills charge on two or three platforms.
- If you're new, start in the lower middle of that range, not at the bottom.
- For small projects, turn your rate into a fixed price: estimated hours × rate, plus 20–30% for revisions and communication.
- Use the fee calculator to check what you'll take home from that price.
Frequently asked questions
What tax rate should I use?
It depends on your country, your income and how you're registered. If you're not sure, set aside a cautious amount and ask a local accountant or your tax office.
My minimum rate is higher than the market rate. What now?
Try a narrower niche, a different platform or clients in other countries, or improve your samples so you can compete above the cheapest sellers. You can also lower your costs, or bill more hours as you get faster.
Should I show an hourly rate on my profile?
On platforms that ask for one, yes. But many beginners find fixed prices easier for small jobs, because clients know the total up front.