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Dev.to
Dev.to
7/20/2026
The original title is "How to Calculate Your True Freelance Hourly Rate (Taxes & Overhead Included)"

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.

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