How the rate is worked out
Hourly rate = (income + costs) × (1 + safety margin) ÷ (billable hours per week × working weeks).
With 60,000 income, 6,000 costs, a 10% margin, 25 billable hours a week and 6 weeks off: (66,000 × 1.10) ÷ (25 × 46) = 63.13 an hour.
Tips
- Be honest about billable hours. Admin, sales and invoicing take time you can't bill.
- Compare with what others charge in your field and country, then round to a clean number.
- For fixed-price projects, estimate the hours and multiply by your rate, plus a buffer for changes.
Ready to bill? The freelance invoice bills by the hour or by the project.
Questions
How many hours can a freelancer bill?
Most freelancers bill 20 to 30 hours a week; the rest goes to admin, finding clients and learning.
Should I include tax?
This calculator works with income before income tax. Remember to set aside money for tax from what you earn.
Hourly or day rate?
Day rates suit longer projects and clients who think in days. The calculator shows both.
When should I raise my rate?
When you are busy most of the time, or once a year. Tell existing clients a month ahead.