Pricing your time

Charge the job that actually exists.

A W-2 salary hides unpaid hours, paid vacation, and benefits. Freelance rates have to surface all of that. Set the life you want, then read the hourly floor off the remaining billable hours.

Life, then the rate

Floor hourly rate

$97

Charge below this and you are subsidizing the client with unpaid admin, vacation, and the benefits a W-2 would have covered. 1288 billable hours this year.

Take-home target
$90,000
+ Benefits / tax buffer
$27,000
+ Business expenses
$8,000
= Must bill
$125,000

Day rate

$776

Assuming an 8-hour billable day cap

Week rate

$2,717

At your billable mix

Billable hours

1288

46 working weeks

Rate math

Start with the salary you would need in cash, add a benefits and tax buffer (self-employment tax, health insurance, retirement matching — 25–35% is a common band), then add annual business expenses. That sum is the amount the year must collect.

Billable hours are not the hours you are awake. They are:

hours = (52 − weeks off) × hours/week × billable%

Proposals, bookkeeping, sales, and slack in the calendar are the unbillable remainder. Many independents land around 50–70% utilization. Hourly rate is total needed ÷ billable hours. Daily rate here caps a day at 8 hours so a 50-hour week does not pretend every hour invoices.

If the number shocks you, that is usually the model working. Undercutting it means you are the one funding the client's discount — with your vacation, your health plan, and your nights.