Freelance Rate Calculator
Work out the day rate, hourly rate, and monthly retainer you need to charge to hit your take-home pay target. Accounts for tax, National Insurance, and business expenses — not just a rough guess.
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How to use this freelance rate calculator
Calculate the hourly or daily rate you need to charge to meet your income goals after accounting for taxes, expenses, holidays, and non-billable time.
- 1Set your income target
Enter the annual take-home pay you want to achieve.
- 2Add business expenses
Include tools, van costs, insurance, software, and other overheads.
- 3Set billable hours
Estimate how many hours per week you can actually bill clients for.
- 4Get your minimum rate
See the hourly and daily rates needed to hit your target.
Why this matters
Most freelancers set their rate by looking at what competitors charge. But that ignores your specific costs, tax situation, and how many hours you can actually bill. This calculator works backwards from what you need to earn, so you know your true minimum rate.
Frequently asked questions
How do I calculate my freelance rate?
Start with your desired annual take-home pay, then add your estimated tax and National Insurance (roughly 25% for basic rate taxpayers, 35% for higher rate) plus annual business expenses. Divide the total by your billable days to get your day rate, then divide by your hours per day for your hourly rate. This calculator does that maths automatically.
How many billable hours should a freelancer account for?
Most freelancers bill 4–6 hours per day on average, not 7–8. The rest is taken up by admin, business development, client communication, and unbillable prep work. Assuming 6 billable hours per day and 4 days per week over 44 working weeks gives roughly 1,056 billable hours per year — a realistic baseline for many UK freelancers.
What is a good day rate in the UK?
Day rates vary hugely by specialism and experience. Junior designers and developers typically charge £200–£350/day. Mid-level professionals often command £350–£600/day. Senior specialists and consultants frequently charge £600–£1,000+/day. Location also matters — London rates tend to run 15–25% higher than regional rates.
Should I charge hourly or by the day?
Day rates are simpler for both parties and protect you against scope creep on individual tasks. Hourly billing works well for ongoing support retainers or unpredictable maintenance work. Project-based fees are best for clearly scoped deliverables. Many freelancers use day rates as their baseline and adapt per client engagement type.
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