Freelance hourly and day rate calculator
Your minimum freelance rate is the yearly revenue you need divided by the hours you can bill. Revenue needed is your target take-home pay grossed up for the tax you set aside, plus your business costs. Enter those, your billable hours a week and weeks worked to get an hourly and a day rate.
This calculator runs in your browser and needs JavaScript. The method is written out below if you want to do the sum by hand.
Your minimum rate
- Per day
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- Profit needed before tax
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- Revenue needed a year
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- Billable hours a year
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Before VAT or GST.
Nothing you type here is sent anywhere: the calculation runs on this page, in your browser.
How it is worked out
- Profit needed before tax = take-home pay ÷ (1 − tax rate). At 28%, £60,000 take-home needs £83,333.33 of profit.
- Revenue needed = profit needed + business costs.
- Billable hours a year = billable hours a week × weeks worked.
- Hourly rate = revenue needed ÷ billable hours a year. Day rate = hourly rate × hours in a billed day.
The tax rate here is the share of profit you set aside, not a statutory rate: income tax and social contributions depend on where you live and how you are set up. The result is a floor, before VAT or GST, with nothing added for slow months or late payers.
ReckonOS sets the same reserve aside from each payment you receive, so you see what is yours to spend. How the Tax Reserve Vault works.
Estimates based on the rules for no specific country (you choose the tax reserve rate) as of November 2026. Check with your accountant. This tool gives an estimate, not tax, legal or financial advice.
More free tools: see all six.
Questions
How do I work out my freelance hourly rate?
Add the take-home pay you want to the tax on it and your yearly business costs, then divide by the hours you can actually bill in a year: billable hours a week times the weeks you work. Billable hours are usually well below the hours you work, because sales, admin and invoicing are not billable.
What tax rate should I use?
Use the share of profit you set aside for income tax and social contributions where you live. ReckonOS suggests 28% to start and lets you choose between 20% and 35%; your accountant can give you a better figure.
Should VAT be in my rate?
No. Quote your rate before VAT or GST. If you are registered, you add the tax on the invoice and pass it to the tax authority; it is never part of your income.
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