Freelance Hourly Rate Calculator
Find the hourly rate that actually replaces your salary — with weekends, leave, holidays, and the benefits you're walking away from already subtracted.
Frequently asked questions
- Why is the freelance hourly rate higher than my salary divided by hours?
- Because a salary hides employer-paid costs you'll now cover yourself: PF, gratuity, ESOPs/RSUs, health insurance, paid leave, sick leave, holidays, equipment, software, accounting, and the cost of unbillable time (sales, admin, learning). The markup replaces all of it.
- Is a 25–50% markup really enough?
- It's a floor, not a ceiling. Use it as the rate at which freelancing breaks even with your old salary. Any rate above this is real upside for the risk you're taking on. Most experienced freelancers charge 1.5–2× the floor.
- Why does my employer tier matter?
- FAANG benefits (RSUs, premium insurance, perks) can be worth 40–60% of base salary. A TCS/Wipro package is mostly cash, so the gap is smaller. Your markup should reflect what you're actually walking away from.
- Should I charge for sick days, holidays, and PTO?
- Yes — the calculator already does. We subtract them from your working days, which raises your effective hourly. If you don't bill enough to cover unpaid time off, you'll burn out.
- What if my freelance contract is full-time hours?
- Multiply this hourly rate by your weekly hours × 52 to get the annual contract value. Then negotiate that as a fixed retainer, not a salary, so you keep the right to take other clients.
- How is this different from a salary-to-hourly converter?
- A salary-to-hourly converter divides by ~2,080 hours and ignores benefits, time off, and risk. This calculator divides by actual working hours and adds a tier-aware markup, so you get a number you can actually use to negotiate.