Freelance Rate Calculator
Calculate your minimum hourly and daily freelance rate based on your income goal, expenses, billable hours, and tax rate.
After-tax take-home income goal
Software, equipment, insurance, office
Self-employment + income tax combined
After holidays and sick days
Typically 50–75% of working hours
HOURLY RATE
DAILY RATE
WEEKLY RATE
Gross needed
Tax reserve
Billable hrs/yr
Utilisation rate
What is Freelance Rate Calculator?
A freelance rate is the amount you charge clients per hour, day, or project. Setting it correctly is critical — charge too little and you won't cover your expenses or match your income goals; charge too much and you may price yourself out of the market. This calculator works backwards from your desired annual net income, adds business expenses and taxes, and divides by your realistic billable hours to find the minimum rate you need to charge.
How to use
- 1 Enter your desired annual take-home income (after tax).
- 2 Enter your estimated annual business expenses (software, equipment, insurance, office).
- 3 Enter your effective tax rate as a percentage.
- 4 Enter your total working weeks per year (typically 48–50 after holidays).
- 5 Enter your billable hours per day — not all working hours are billable due to admin, marketing, and downtime.
- 6 The calculator shows your minimum hourly rate, daily rate, and weekly rate.
Formula
Example calculation
Desired net income: $80,000. Expenses: $10,000. Tax rate: 25%. Gross needed = ($80,000 + $10,000) ÷ 0.75 = $120,000. Billable hours = 48 weeks × 5 days × 6 hours = 1,440. Hourly rate = $120,000 ÷ 1,440 = $83.33/hr.
Frequently asked questions
Why are my billable hours less than my working hours?
Freelancers typically spend only 50–70% of their working time on billable client work. The rest goes to finding new clients, sending invoices, accounting, professional development, meetings, and other non-billable admin. This is called the utilisation rate.
Should I charge more than my minimum rate?
Your minimum rate is just that — a floor. You should charge more based on your expertise, the value you deliver, market rates in your niche, client budget, and the complexity of the project. The minimum just ensures you don't undercharge.
How do I handle taxes as a freelancer?
As a self-employed person, you typically pay both employee and employer portions of social security/national insurance, plus income tax on profits. Set aside 25–35% of every payment for taxes in a separate account. Consult a local accountant for precise rates.
What expenses should I include?
Include all costs of running your freelance business: software subscriptions, hardware, home office costs (proportional), professional insurance, professional memberships, marketing, accounting fees, and training. Do not include personal living expenses.
Should I charge a daily rate or hourly rate?
Daily rates are common for on-site or long-term engagements and reduce the admin of tracking hours. Hourly rates suit shorter or variable-scope projects. Many freelancers use hourly for small projects and daily for larger ones. Your daily rate is typically 7–8× your hourly rate.