Free tool · Runs in your browser
Freelance rate calculator
Work back from the income you want to the hourly and day rate you need to charge as a freelancer. Enter the yearly income you want to keep, your business costs, the hours you can bill and the weeks you will take off. See the revenue you need and the hourly and day rate that covers it.
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Updated
Your results
- Revenue needed = income you want plus business costs, divided by one minus the share set aside for tax.
- Hourly rate = revenue needed divided by billable hours per week times the weeks you work, which is 52 minus your weeks off. Day rate = hourly rate times 8.
- The tax share is only what you choose to put aside; the calculator does not work out tax. Amounts are in the currency you entered.
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How to use it
- Enter the income you want. Type the yearly amount you want to keep for yourself, then add the yearly costs of running your work, such as software, equipment, insurance and workspace.
- Be honest about billable time. Enter only the hours per week you can charge for, leaving out admin, sales and learning, and the weeks you expect not to bill for holidays, illness or quiet spells.
- Set aside a share for tax. Enter the percent of revenue you plan to put aside for tax, based on your own estimate or advice, then read the revenue you need and the hourly and day rate to charge.
Example
What was entered
- Income you want a year
- 80,000.00
- Business costs a year
- 10,000.00
- Billable hours per week
- 25 hours
- Weeks off a year
- 6 weeks
- Share set aside for tax
- 25%
The result
- Revenue needed a year (in your currency)
- 120,000.00
- Hourly rate (in your currency)
- 104.35
- Day rate (8 hours) (in your currency)
- 834.78
Next: search jobs at your pay target
Save a job search with an annual salary target in an Applystead account, and Applystead applies to your matching jobs. Try Applystead free for 7 days (card required).
- Auto apply sends your new matches for you, résumé attached and questions answered from your saved answers.
- Employer replies arrive in your Applystead mailbox and show next to the application they’re about.
- Full auto answers recruiters, offers times that are free on your calendar and adds the interview when one is accepted.
Related free tools
- Contract to salary calculator: Turn an hourly contract rate into yearly income and an equivalent salary after an allowance for benefits.
- Real hourly wage calculator: See what your job really pays per hour once commute time, unpaid time and work costs are counted.
- Hourly to salary calculator: Convert an hourly rate into a yearly salary and every common pay period, based on your own hours and weeks.
- Salary to hourly calculator: Convert a yearly salary to hourly pay, or any pay period to any other, with your own hours and weeks.
- Salaries by role, company and city: the pay ranges employers post in their job listings.
Related guides
Frequently asked questions
How do I calculate my freelance hourly rate?
Add your target income and yearly costs, then divide by one minus the share you set aside for tax to get the revenue you need. Divide that by your billable hours per week times the weeks you work. For 80,000 income, 10,000 costs, a 25 percent reserve, 25 hours and 6 weeks off, that is 104.35 an hour.
Why are billable hours so much lower than working hours?
Time spent finding clients, writing proposals, invoicing and learning is work, but nobody pays for it by the hour. If you enter all your working hours as billable, the rate comes out too low to reach the income you want. Track a few weeks to see your real billable share.
What should I enter as the share set aside for tax?
Enter the percent of revenue you want to put aside so your tax is covered. The calculator does not know your tax rules and does not work out tax for you, so use your own estimate from past years or ask a tax adviser, then change the figure to see its effect on your rate.
How is the day rate worked out?
The day rate is the hourly rate times 8 hours. If your days are shorter or longer, multiply the hourly rate by your own day length instead. A day rate can also include a small premium for committing a full day to one client.
Should I charge exactly this rate?
Treat it as the floor that covers your income, costs and tax reserve. What clients will pay depends on your field, your experience and the value of the work, so compare it with rates you see quoted for similar work before you settle on a price.