Freelancer Rate Calculator

78.70

Hourly Rate

629.63

Daily Rate (8h)

1440

Billable Hours/yr

113,333.33

Gross Revenue Needed

Why Freelancers Undercharge

Many freelancers set rates based on what they earned as an employee, without accounting for taxes, business expenses, unpaid time (admin, marketing, sick days), and the lack of employee benefits. This calculator factors in all these to ensure you charge a sustainable rate.

A good rule: assume only 60–75% of your working hours are actually billable. The rest goes to business overhead.

Frequently Asked Questions

How many weeks should I plan to work?

48 weeks is a common baseline — accounting for 2 weeks vacation and 2 weeks of sick/unplanned time. More conservative freelancers plan for 44–46 weeks to account for slower periods and client gaps.

Should I include software and tools in expenses?

Yes — include all business expenses: software subscriptions, hardware, professional development, coworking space, accountant fees, and marketing costs. These are pre-tax deductions in most countries.

Am I charging too little?

If your current rate is below this calculator's result, you are likely undercharging. Start by raising rates for new clients, then gradually increase for existing ones. Clients who value your work will accept reasonable increases.

The Formula

Gross = (Income + Expenses) / (1 − Tax)
Rate = Gross / Billable Hours