Freelance Rate Calculator

Find your ideal hourly and daily rate based on your target annual income, number of working days, business expenses, tax rate, and desired profit margin.

Income & Tax

Target Annual Take-Home ($): Net income you want after taxes and expenses.

Effective Tax Rate (%): Income + self-employment taxes combined.

Working Days

Working Days / Year: Total days available (e.g. 260 minus 20 vacation + 20 sick).

Billable Days (%): Days spent on paid client work vs. admin/marketing.

Billable Hours / Day: Paid hours per working day.

Expenses & Profit Margin

Annual Business Expenses ($): Software, equipment, insurance, office, etc.

Profit Margin (%): Buffer for savings, growth, and emergencies.

Your Rates

Hourly Rate

-

Daily Rate

-

Weekly Rate

-

Monthly Rate

-

Annual Revenue Breakdown

Target Take-Home Income:	-
+ Taxes:	-
+ Business Expenses:	-
+ Profit Margin:	-

Required Annual Revenue:	-

Working Days Breakdown

Available Days / Year:	-
Billable Days / Year:	-
Non-Billable Days / Year:	-

Total Billable Hours / Year:	-

Rate Scenarios

Scenario	Hourly	Daily	Annual Revenue

How It Works

Step 1 — Required Annual Revenue

Revenue = (Target Income + Expenses) / (1 − Tax Rate) / (1 − Profit Margin)

Step 2 — Billable Hours Per Year

Billable Hours = Working Days × Billable % × Hours Per Day

Step 3 — Hourly Rate

Hourly Rate = Required Annual Revenue / Billable Hours Per Year

What to Include in Expenses

Software & tools — design, dev, accounting subscriptions
Insurance — health, liability, professional indemnity
Equipment — computer, monitors, peripherals
Office — coworking, internet, phone
Professional development — courses, conferences, books

Tips for Setting Rates

Most freelancers bill 60-80% of their working days
Non-billable time includes admin, proposals, and invoicing
Increase rates 5-10% annually to match inflation
Project rates can command a 15-25% premium over hourly
Review your rate every 6 months as your skills grow

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