1. What's your targeted annual income?
Estimate and sum up all of your annual costs (personal and business).
2. How many hours do you intend to bill per week?
Be realistic — The number of billable hours is different from the actual hours you'll work. You could work 40+ hours a week, but may only bill for around 10–20 of them.
Your rate is: $0 an hour
OR $0 an hour (with 20% applied for taxes)
With your hourly rate...
Factor in your current skill level, experience, and service demand for your target market. This may fluctuate your hourly rate by ± $10–30.
If you’re used to working a full-time job, your hourly rate as a freelancer might seem high, but you have to consider health insurance, additional tax burdens, and that a significant portion of your time will be spent on un-billable work (like finding and negotiating with clients). Once you consider these factors, your adjusted hourly rate will be much lower.