Freelance rate calculator
Enter the income you want to keep after tax, your yearly business expenses, the tax share, your working hours, weeks off and the share of your time you can actually bill. The calculator returns the hourly and day rate, the revenue you must earn and your billable hours per year.
Runs in your browser: nothing you enter is sent anywhere.
How to use it
- Enter the yearly income you want to keep after tax.
- Add your business expenses and an estimated tax rate.
- Enter your weekly hours, weeks off and the share you can bill.
- Read the hourly rate and the revenue it needs to cover.
How it works
- Revenue needed = take-home ÷ (1 − tax) + expenses.
- Billable hours = hours per week × (52 − weeks off) × billable share.
- Hourly rate = revenue ÷ billable hours; the day rate is 8 times that.
Worked example
Take-home 60,000, expenses 6,000, tax 25%: revenue is 60,000 ÷ 0.75 + 6,000 = 86,000.00. Billable hours are 40 × 46 × 0.6 = 1,104.0. The rate is 86,000 ÷ 1,104 = 77.90 an hour.
Tips
- Be honest about billable time. It is the biggest lever on the rate.
- Add a buffer for slow periods, equipment and retirement saving through expenses.
- Taxes here are a rough flat estimate, not advice.
Frequently asked questions
How is the hourly rate calculated?
Revenue = take-home ÷ (1 − tax rate) + expenses, which treats tax as paid on revenue minus expenses. Billable hours = hours per week × (52 − weeks off) × billable share. The rate is revenue ÷ billable hours.
What share of my time can I bill?
It depends on your work. Admin, marketing, finding clients and unpaid revisions take time, so many freelancers bill well under their full working hours. The default of 60% is only an example; use your own records.
Is the tax rate my real tax?
It is a single flat percentage on profit that you choose. Real tax depends on where you live, deductions and social contributions, so check with a local advisor.
Should I charge exactly this rate?
Treat it as a minimum. Market rates, your experience and what clients will pay matter too, and it does not include a buffer for slow months.
What do the defaults give?
60,000 take-home, 6,000 expenses and 25% tax need 60,000 ÷ 0.75 + 6,000 = 86,000 of revenue. With 40 hours, 6 weeks off and 60% billable that is 1,104 hours, so 77.90 an hour.