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Hndy Tools

Hourly Rate Lie Detector

Your real hourly rate is lower than you think — find out how much lower.

Finance
Freelance
Business

Your Freelance Details

About This Tool

Most freelancers quote a rate based on what they charge clients, but the real number — after taxes, unpaid admin, revisions, and software subscriptions — is often 30–60% lower. This tool makes that gap unmissable.

Once you know your real floor, use the Price Raise Calculator to find the exact rate you need to charge. To rank your clients by actual profitability, try the Client Profitability Ranker.

All calculations happen in your browser — no data is sent to any server.

How It Works

Total Work Hours/Week = Billed + Admin + Revision Hours
Gross Weekly = Stated Rate × Billed Hours
After-tax Weekly = Gross Weekly × (1 − Tax Rate)
Net Weekly = After-tax Weekly − (Monthly Tools ÷ 4.33)
Effective Rate = Net Weekly ÷ Total Work Hours/Week

Most freelancers quote their billed rate, but tax, unpaid admin, revisions, and tool subscriptions all silently erode it. This formula reallocates those hidden costs back over every hour you work — not just the hours you invoice for.

Frequently Asked Questions (FAQ)

Why is my effective rate so much lower?
Most freelancers only count billed hours as "working." But admin (invoicing, emails, proposals), revisions, and taxes all consume your real earnings. The effective rate reflects total hours worked against actual take-home pay.
What counts as admin hours?
Client communication, writing proposals, invoicing, bookkeeping, marketing yourself, and any work you do that is not directly billable to a client.
Should I include benefits I am missing?
Self-employed people pay both sides of payroll taxes (15.3% in the US) and have no employer-provided health insurance or retirement match. When comparing to a salaried role, add 20–30% to your stated rate to make it an equivalent comparison.
How do I use this to raise my rates?
Once you know your effective rate, you have your real floor. Use our Price Raise Calculator to find the exact rate increase that keeps you revenue-neutral even after losing some clients.

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