How to calculate your freelance hourly rate
- Start from what you need to keep: the monthly amount you want to take home.
- Add your business costs and any tax you have to set aside.
- Gross it up for fees: divide by what's left after the platform fee and your withdrawal costs. For example, Upwork's 10% and a 3% withdrawal leave you 87.3% of what the client pays.
- Divide by billable hours, not working hours. If you work 40 hours a week but can bill only 65% of them, with 4 weeks off, that's about 104 billable hours a month.
Rate = (take-home + costs + tax reserve) ÷ (1 − platform fee) ÷ (1 − payout cost) ÷ billable hours per month.
How platform fees change the rate you need
| Where you work | Fee on each payment | You keep from $100 (before payout) |
|---|---|---|
| Direct client | 0% | $100.00 |
| Upwork (typical) | ~10% (0–15% per contract) | ~$90.00 |
| Fiverr | 20%, including tips | $80.00 |
To keep the same money, a Fiverr price has to be about 12% higher than an Upwork rate, and an Upwork rate about 11% higher than what you'd charge a direct client. The Upwork and Fiverr fee calculators show the exact take-home on any job.
Hourly or fixed price?
Fixed-price jobs and Fiverr gigs still need the same rate underneath. Estimate the hours a project will really take, including messages and revisions, and multiply by your minimum hourly rate. If the budget is lower than that, the job pays less than you need.
Frequently asked questions
How do I calculate my freelance hourly rate?
Add the money you want to keep each month to your business costs and any tax you set aside. Divide by the platform and payout costs you lose (for example 10% to Upwork and about 3% to withdraw), then divide by the hours you can actually bill in a month, not the hours you work.
What hourly rate should a beginner charge on Upwork?
Start with the minimum from this calculator, which is what you need to cover your living costs after fees. Then look at freelancers in your skill and country with similar experience. Charging below your minimum means working at a loss, even if it wins jobs.
Does my hourly rate need to include Upwork's fee?
Yes. The rate you set is what the client pays, and Upwork takes its service fee (usually about 10%) from it. Withdrawing and converting to your currency costs a few percent more, so your rate has to cover both.
Should I charge more on Fiverr than on Upwork?
To keep the same amount, yes. Fiverr takes 20% of every order compared with Upwork's typical 10%, so the same take-home needs a price about 12% higher on Fiverr.