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//// Business · Pricing

Freelance Rate Finder

Tell me what you want in your bank, I'll tell you what to charge. Works backwards from take-home — never undercharge again.

Where this fits

📦 Business & Seller OpsGoing 1099FreelancersFounders

This tool lives inside Going 1099 and is most useful for freelancers and founders.

Corp Tax Rate21%
SE Threshold$400
FICA Cap 2024$168,600
To take home $80,000/yr, charge at least $102.23/hr — or $122.67/hr with your 20% margin.
Min hourly
$102.23
Breakeven
Recommended
$122.67
+20% margin
Day rate
$981
8-hour day
Monthly retainer
$12,267
100 hrs/mo

The breakdown

Take-home target$80,000
+ SE tax (14.13%)$16,655
+ Income tax$21,217
+ Overhead$4,800
Revenue needed$122,672
÷ 1,200 hrs$102.23/hr

Reality check

That's about $1,667/week in your pocket. Your effective hourly cost-of-business is $102.23/hr.
1

Working weeks per year

Weeks = 52 − vacation weeks

= 52 − 4 = 48 weeks

2

Annual billable hours

Billable hrs/yr = weeks × billable hrs/week

= 48 × 25 = 1,200 hrs

Billable hours only — admin, marketing, and proposals don't count.

3

Pre-tax income needed

Pre-tax = take-home ÷ (1 − SE tax − income tax)

$80,000 ÷ (1 − 0.1413 − 0.18)

= $117,872

SE tax = 15.3% × 92.35% of net earnings ≈ 14.13% effective. IRS Schedule SE.

IRS Pub 334; Schedule SE

4

Self-employment tax

SE tax ≈ pre-tax × 14.13%

= $16,655

12.4% Social Security + 2.9% Medicare, applied to 92.35% of net earnings.

5

Income tax (federal + state)

Income tax = pre-tax × 18%

= $21,217

Effective rate, not bracket. Adjust for your real situation.

6

Annual overhead

Overhead = monthly overhead × 12

= $400/mo × 12 = $4,800

7

Total revenue needed

Total = pre-tax income + annual overhead

= $117,872 + $4,800 = $122,672

8

Minimum hourly (breakeven)

Min hourly = total revenue ÷ annual billable hours

= $122,672 ÷ 1,200 = $102.23/hr

This is the floor. Charging less means you're losing money once taxes hit.

9

Recommended hourly

Recommended = min hourly × (1 + 20% margin)

= $102.23 × 1.20 = $122.67/hr

Profit margin is the cushion for slow months, surprise expenses, and reinvestment.

10

Day rate (8 hours)

Day rate = recommended hourly × 8

= $981

11

Monthly retainer

Retainer = recommended × (annual billable ÷ 12)

= $122.67 × 100 hrs/mo = $12,267

Key insight

Most freelancers undercharge because they price like employees — they forget SE tax, overhead, and unbillable time. Charging $122.67/hr nets you $80,000/yr after taxes. Charging less means you're working for free somewhere.

#ShowYourWork

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