Stop Undercharging Your Work

Most freelancers price based on guesswork. This tool shows what you actually need to charge — and whether the market will accept it.

Pricing Calculator

Input your realistic business numbers below to uncover the exact rates you need to charge to survive and grow.

Your Business Inputs

How much you want to take home per year

Tools, software, taxes, and other costs

Most freelancers choose 20–30%

Assumes 65% billable time

Total working hours (not all billable)

Typical time spent per project

Ready to calibrate?

Enter your details to see your ideal pricing instantly.

How This Pricing Is Calculated

This calculator estimates your ideal pricing based on your income goals, business expenses, and realistic working capacity.

It's designed to reflect how freelance businesses actually operate — not just simple math.

The Reality Check

Most freelancers undercharge because they assume all their working hours are billable. In reality, a significant portion of your time goes to non-billable work like client communication, admin, marketing, and sales.

Here's how your pricing is calculated:

1Required Annual Revenue

We calculate how much your business needs to generate annually to support your income, cover expenses, and maintain your desired profit margin.

Formula: Required Revenue = (Target Income + Expenses) ÷ (1 − Profit Margin)

2Billable Hours

Not all working hours are billable. We adjust your total working time using a realistic utilization rate. Most freelancers fall between 50%–70% billable time.

Formula: Billable Hours = Hours per Week × 48 Weeks × Utilization Rate

3Hourly Rate

Your hourly rate is calculated by dividing your required revenue by your available billable hours.

Formula: Hourly Rate = Required Revenue ÷ Billable Hours

4Project Rate

Your project rate is based on your hourly rate and the average time you spend per project.

Formula: Project Rate = Hourly Rate × Average Project Hours

Why Your Price Might Feel High

If your calculated rate feels high, it's usually because:

  • A large portion of your time isn't billable
  • Your expenses reduce your usable income
  • Your profit margin adds necessary business buffer

This doesn't mean your pricing is wrong — it reflects the reality of running a sustainable business.

A Tool for Reality Calibration

This model is intentionally conservative. It prioritizes sustainability over optimism — helping you avoid underpricing and burnout.

Next step

Once you've set your pricing, estimate how much of your revenue you'll actually keep after taxes.

Calculate your take-home →
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