Tool No. 002 · Free · No sign-up
Freelance Rate Calculator
Start from the money you need each month. Get the hourly, day and project rate that pays for it — after costs, tax and the hours nobody pays for.
Your lowest rates
- Money needed per year
- Billable hours per year
- Hourly rate
- Day rate
- This project
- Bill each month
How the sum works
- Money needed per year = (take-home pay + business costs) × 12, then grossed up so the tax share comes out of it.
- Billable hours per year = billable hours per week × (52 − weeks off).
- Hourly rate = money needed ÷ billable hours.
- Day rate = hourly rate × hours in your working day.
This is the lowest rate that pays your bills. It is not what the market will pay. If the market pays more, charge more. If it pays less, look at your costs, your hours, or the kind of client you work for.
All figures are before GST. Once you have a price, the GST calculator shows what the client pays.
Questions
How do I calculate my freelance hourly rate?
Add up the money you need in a year: your take-home pay, your business costs, and what you keep aside for tax. Divide it by the hours you can really bill in a year. That is the lowest rate that pays your bills.
Why not divide by 40 hours a week?
Because you will not bill 40 hours. Proposals, calls, invoices, learning and finding clients take time nobody pays for. Many freelancers bill 20 to 30 hours in a full week.
Should I charge by the hour or by the project?
Use the hourly rate to check a project price, even if you never show it. Estimate the hours, multiply, and add room for changes. If the client wants a fixed price, quote the project.
How much should I keep aside for tax?
It depends on your income and the tax scheme you file under. Many freelancers keep 10% to 30% of each payment aside. A CA can tell you the right figure for your case.
Does this include GST?
No. These rates are before GST. If you are registered for GST, add it on top when you invoice — the GST is not your income.