How much should I charge per hour as a freelancer?

Formula: (annual salary target + overhead + profit margin) ÷ billable hours. $100K target + 30% overhead + 20% profit ÷ 1,200 billable hours = $130/hr. Most freelancers underprice because they forget: you only bill 60% of your working hours. Factor taxes (25-35%), insurance, retirement, equipment.