Freelance Hourly Rate Formula: Why $45/hr Still Feels Broke

$45/hr feels normal, but it ignores tax, non-billable time, benefits, expenses, and slow weeks.

Who this is for

Solo freelancers who undercharge because their rate ignores real costs.

How to calculate your real rate

Take-home + tax buffer + expenses + benefits + profit ÷ hours you actually invoice (hours × weeks × utilization).

1. $65k ÷ (1−.30) = $92,857 pre-tax.
2. Revenue target ≈ $113,286.
3. 40×48×.50 = 960 billable hours.
4. Floor ≈ $118/hr (day ≈ $944).

Quote above the floor

Show phases, hours, rate, rush, expenses, deposit, exclusions, effective $/hr. Under floor: raise fee, cut scope, or decline.

Compatibility & FAQ

Excel + Google Sheets (import .xlsx). No macros. Not tax/legal/financial advice.

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