Freelance Rate Guide
Freelancers typically charge 1.5–2.5× their equivalent employee hourly rate to cover taxes, benefits, downtime, and business expenses.
1.5× — Minimum Viable Rate
Tight margins. Only viable if you have very low overhead and consistent client flow.
1.75× — Healthy Sustainable Rate (Default)
Covers self-employment tax, health insurance, equipment, and a reasonable buffer for unpaid time. This is our recommended default.
2.0×+ — Premium / Specialized Expertise
For highly specialized skills, in-demand niches, or premium consulting. Justify with demonstrable expertise and results.
What the Multiplier Covers
- Self-employment tax: You pay both the employer and employee portions of Social Security and Medicare (15.3% in the US).
- Health insurance: No employer-subsidized plan means you cover premiums yourself.
- Business expenses: Software, hardware, office space, professional development.
- Unpaid time: Vacation, sick days, admin work, marketing, and gaps between projects.
- Savings buffer: Emergency fund and retirement contributions that an employer might match.
Frequently Asked Questions
What is a good freelance rate multiplier?
A common rule of thumb is to charge 1.5× to 2.5× your equivalent employee hourly rate. The exact number depends on your expenses, taxes, benefits, and how much downtime you have between projects.
Why is the 1.75× multiplier a good default?
The 1.75× multiplier is high enough to cover self-employment tax, health insurance, equipment, and a buffer for unpaid time, but not so high that it prices you out of typical projects. It is a sustainable default for most freelancers.
When should I charge 2× or more?
Charge 2× or more if you have highly specialized skills, in-demand expertise, premium positioning, or a track record of measurable results that justify higher rates.
When is 1.5× acceptable?
A 1.5× multiplier is only viable when you have very low overhead, consistent client flow, and minimal unpaid time between projects. It leaves little margin for unexpected expenses or slow months.
How do I calculate my freelance rate from my salary?
First convert your target salary to an hourly rate using standard work hours for your country. Then multiply by your chosen multiplier (1.5×–2.5×). For example, a $75,000 salary at 2,080 hours is $36.06/hour, which becomes about $63/hour at 1.75×.