Freelance rate calculator
Work out the hourly, day and project rate you need to charge as a freelancer.
How to use
Start from what you need to earn, not from what others charge. The calculator turns the income you want to keep, your business costs and your tax into the revenue you have to bill in a year, then divides it by the hours a client can actually be billed for.
The formula: revenue needed = take-home income ÷ (1 − tax rate) + business costs. Billable hours = (52 − weeks without paid work) × hours per week × billable share. Minimum hourly rate = revenue needed ÷ billable hours, and the recommended rate adds the safety margin. The day rate is the recommended rate × hours per working day, and the project price is the recommended rate × the hours the project takes.
The billable share is the part of your working time that a client pays for. Admin, invoicing, looking for clients and learning are work too, but nobody is billed for them, which is why a freelance hourly rate is higher than a salary divided by hours.
Tax is simplified to one percentage of profit. Use the effective rate you actually pay, including social contributions; last year’s figures or an accountant give the best estimate. The results exclude VAT or sales tax, which is added on top where it applies.
The values filled in when the page opens are only an example. Replace each one with your own.
Example
The example: 24,000 take-home, 3,000 costs, 20% tax, 30 hours over 4 days, 8 weeks off and 60% billable give 792 billable hours a year, so 41.67 an hour is the minimum and 45.83 the rate with the 10% margin.
30,000 take-home, 6,000 costs, 25% taxRevenue needed: 30,000 ÷ 0.75 + 6,000 = 46,000 a year.(52 − 6) weeks × 40 h × 70%1,288 billable hours, so the minimum is 46,000 ÷ 1,288 = 35.71 an hour.35.71 + 15% safety marginRecommended 41.07 an hour, 328.57 for an 8-hour day and 1,642.86 for a 40-hour project.
Frequently asked questions
Why is the hourly rate so much higher than a salary per hour?
An employee is paid for holidays, public holidays and sick days, and the employer pays for equipment and part of the social contributions. A freelancer pays for all of that out of billed hours, and only part of the working week can be billed.
What billable share should I use?
Your own. For a few weeks, note the hours you could invoice and the hours you worked, and divide one by the other. It depends on the kind of work and on how much time goes into finding clients, so no single figure fits everyone.
What is the safety margin for?
Quiet months, late payments, a cancelled project or a cost you forgot. With a 15% margin, billing every planned hour brings in 15% more than the minimum you need.
Does the rate include VAT?
No. All the results are prices before VAT or sales tax. If you have to charge it, add it on top, for example with the tax calculator.