Why freelancers undercharge (and how to fix it)
Most freelancers quote an hourly rate that sounds reasonable — then wonder why annual income feels thin. The gap is rarely laziness; it is math. Billable hours are not 40 × 52. Vacation, admin, sales calls, and slow weeks shrink the denominator. Taxes, health coverage, and software eat the numerator.
A premium rate calculator makes the invisible visible: gross revenue, buffer for taxes and benefits, and monthly business costs — before you negotiate the next project. When you see take-home per billable hour, you stop comparing yourself to salaried W-2 numbers that include hidden employer subsidies.
Use this as a floor, not a ceiling. Specialists with strong positioning charge above the recommended rate — but you should never say yes to work below your real break-even.