Freelance Rate Calculator
The hourly and day rate you need to charge to reach a yearly income, after business costs, the tax you set aside, time off and the hours you can actually bill.
Result…
How it's calculated
Profit before tax = take-home ÷ (1 − set-aside ÷ 100) Revenue = profit + expenses Billable hours = (52 − weeks off) × hours a week × billable share Hourly rate = revenue ÷ billable hours Day rate = hourly × hours a day
A freelance rate has to cover more than a salary does: the business costs an employer would pay, tax you set aside yourself, unpaid holidays and sick days, and the hours spent finding and running work. This works back from the income you want to keep to the revenue you need, then spreads it over the hours you can bill. The tax set-aside is a single share of profit you choose; real tax depends on your country, allowances and business structure, so check it with an accountant. Rates in a market also depend on demand and what clients pay, which this cannot know.
Your numbers, step by step
About the Freelance Rate calculator
This freelance rate calculator works out what to charge by the hour and by the day to reach the income you want to keep. It starts from your target take-home income, adds your business expenses and the share of profit you set aside for tax, then spreads the total over the hours you can actually bill: the weeks you work, the hours in your week and the share of them clients pay for. From the hourly rate it also prices a fixed project from your estimate of its hours and a monthly retainer. It suits designers, developers, writers, consultants and anyone moving from a salary to self-employment. You choose the tax set-aside yourself, because tax rules depend on your country and business structure, and every step of the working is shown so you can check it.
How to use it
- Enter your “Target take-home income a year” and your “Business expenses a year”.
- Enter the “Tax set-aside” you plan to keep aside from profit; take it from your own tax situation or an accountant.
- Enter “Weeks off a year”, “Working hours a week” and the “Billable share of working hours”.
- Set “Hours in a billed day” for your day rate.
- Add a “Project estimate” and “Retainer hours a month” to see a project quote and a retainer price.
Worked example
To keep 50,000 a year with 6,000 of expenses and a 30% tax set-aside, profit before tax must be 50,000 ÷ 0.7 = 71,428.57, so revenue must be 77,428.57. Working 45 weeks of 38 hours with 65% billable gives 1,111.5 billable hours. The hourly rate is 77,428.57 ÷ 1,111.5 = 69.66, a 7.5-hour day is 522.46, a 40-hour project is 2,786.45 and a 15-hour monthly retainer is 1,044.92.
Updated
Questions people ask
How do I calculate my freelance hourly rate?
Add your target income, your business expenses and the tax you need to set aside, then divide by the hours you can bill in a year: working weeks × hours a week × your billable share.
Why is a freelance rate higher than a salary divided by hours?
A freelancer pays their own business costs and tax set-aside, is not paid for holidays or sick days, and spends part of every week on sales, admin and invoicing. To compare with an employee's pay, see the salary to hourly calculator.
What billable share should I use?
Use your own time records if you have them: the hours clients actually paid for divided by the hours you worked. If you are starting out, try a few values and see how much the rate changes.
How do I turn an hourly rate into a project price?
Multiply your hourly rate by the hours you expect the project to take. You can add a margin for revisions and unknowns, or simply estimate the hours generously.
Is the tax set-aside my real tax bill?
No. It is a single percentage you choose for planning. Real tax depends on your country, allowances, social contributions and business structure, so ask an accountant or your tax office what to set aside.