Freelance rate calculator
Work back from the income you need to the minimum hourly and day rate you should charge.
Expenses include software, equipment, insurance, accounting, coworking and pension contributions.
Minimum hourly rate
- Day rate (8 hours)
- $0
- 40-hour project
- $0
- Revenue needed per year
- $0
- Revenue needed per month
- $0
- Billable hours per year
- 0 h
How it works
Revenue needed = (take-home income + expenses) ÷ (1 − tax rate), plus your profit buffer. Billable hours = (52 − weeks off) × weekly hours × billable share. Your minimum hourly rate is revenue needed ÷ billable hours.
Why freelancers undercharge
Most people compare a freelance rate with their old salary divided by 2,080 hours. That ignores unpaid holidays, sick days, admin and sales time, and the taxes and benefits an employer used to pay. A 60% billable share is typical for established freelancers; new ones are often lower.
This is a planning tool, not tax advice. Check your actual tax rate with a local accountant.
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