Dev.to
7/20/2026

The original title is "How to Calculate Your True Freelance Hourly Rate (Taxes & Overhead Included)"
Original: How to Calculate Your True Freelance Hourly Rate (Taxes & Overhead Included)
Short summary
The article explains why dividing a target salary by 2,080 hours underestimates a freelancer's needed rate, ignoring self-employment taxes, non-billable admin time, and unpaid leave. It provides a corrected formula incorporating net income, taxes, business expenses, and realistic billable hours (4-6 per day). A free calculator tool is promoted for US, UK, Germany, France, UAE, and India markets.
- •Dividing target salary by 2,080 hours ignores self-employment taxes, admin time, and unpaid leave
- •Correct formula: (Net Income + Taxes + Expenses) / (Billable Days × Daily Billable Hours)
- •Realistic billable hours are 4-6 per day, not 8
Generated with AI, which can make mistakes.
Is this a good recommendation for you?



