SiliSoftware is free to use.
Donations are also welcome.

Source code available upon request (donation appreciated)

SiliSoftware » Tools » FavIcon Converter / Generator
Upload any image to convert into an icon (.ico file). Select as many resolutions as desired, they will all be stored in the same file (the application will select the most useful size when displaying). Source image formats with transparency (PNG, GIF) will preserve transparency in the icon.

Image to create icon from: (max. 1.00 MB)

also make 32x32 desktop icon