How to work out your freelance rate
- Enter the take-home pay you want in a year, and the share of your income that goes on income tax and social contributions.
- Add your yearly business costs: equipment, software, insurance, accountant, coworking, phone, training and pension contributions.
- Be realistic about time: weeks off for holidays, public holidays and sickness, and the share of your working hours you can actually bill. Admin, sales and finding clients are unpaid.
- The minimum hourly and day rates appear instantly. Use them as your floor, not your price.
Why freelancers charge more than employees earn
New freelancers often divide a salary by 52 weeks of 40 hours and charge that. It is the fastest route to burnout. As a freelancer you pay your own tax and contributions, holiday and sick days are unpaid, you buy your own equipment, and a large part of every week goes on emails, quotes, invoicing and marketing. Many freelancers bill only 50–70% of their working hours, and fewer in the first year. Once these are counted, the hourly rate that delivers the same take-home pay is commonly two to three times the equivalent employee hourly wage.
This calculator gives the minimum you need to charge to meet your goal. Your actual price should also reflect your experience, the value you deliver and the market: check what others in your field charge, and consider day rates or fixed project prices, which reward you for working efficiently. Review your rate every year and when your costs change. Tax rates vary by country and income, so the percentage here is a simplification; an accountant can give you a precise figure. All numbers stay in your browser, and the link remembers them.
What percentage of hours can freelancers bill?
Commonly 50–70%. The rest goes on admin, sales, learning and finding new work.
Should I charge by the hour or by the project?
Hourly is simpler to start; project pricing often earns more once you can estimate well, because you are paid for results rather than time.
How do I calculate a day rate?
Multiply your hourly rate by the hours in your working day, usually 7 to 8.