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Freelance rate calculator

Find the minimum hourly and day rate that pays you what you need, after tax, business costs and time off. Change any number and the result updates instantly.

Your numbers

$
What you want to keep after tax: your "salary".
$
Software, equipment, insurance, accountant, workspace, phone, training.
%
Income tax plus social or self-employment contributions. Ask an accountant if unsure.
weeks
Holidays + public holidays + about 1–2 weeks for sickness.
hours
Only hours you charge for. Most freelancers bill 20–28 of a 40-hour week.
hours
Your minimum hourly rate
–
Day rate–
Revenue needed per month–
Revenue needed per year–
Billable hours per year–
Tax to set aside per year–

This is your floor: the least you can charge and still hit your target. Price above it for the value you deliver.

Next: create an invoice →

How the calculator works

Your rate has to cover more than your take-home pay. The calculator works backwards from what you want to keep:

  1. Profit needed before tax = take-home income ÷ (1 − tax rate).
  2. Revenue needed = profit before tax + business costs.
  3. Billable hours a year = (52 − weeks off) × billable hours per week.
  4. Minimum hourly rate = revenue needed ÷ billable hours a year.

The day rate is your hourly rate times the hours in your working day. If you quote fixed project prices, estimate the hours, multiply by your rate and add a buffer for revisions.

Why it's higher than your old hourly pay

As an employee your employer paid for your holidays, equipment and part of your tax, and every working hour was paid. As a solopreneur, time spent finding clients, invoicing and learning is unpaid, so the hours you do bill must carry the rest. Read how to set your freelance rate for a worked example and how to price above your floor.

Frequently asked questions

How do I calculate my freelance hourly rate?

Divide your target take-home income by (1 minus your tax rate), add your yearly business costs, and divide the total by the hours you can bill in a year (working weeks times billable hours per week).

How many billable hours should I plan for?

Most freelancers bill 50-70% of the hours they work, because finding clients, admin and learning are unpaid. For a 40-hour week, 20-28 billable hours is a realistic range.

What tax rate should I use?

Use your best estimate of the total tax and social contributions you will pay on your profit. If you are unsure, ask an accountant or use your tax authority’s calculator; you can also use our tax set-aside calculator.

Is the result what I should charge?

It is your minimum: the rate that pays you your target. Your actual price should also reflect the value you deliver and what experienced people in your niche charge.

Learn more

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