Freelance Day Rate & Hourly Rate Calculator
Work backwards from the take-home income you want to the day and hourly rate you need to charge, after costs, tax and non-billable time.
Formula: rate = (target income ÷ (1 − tax rate) + costs) ÷ billable days. $60,000 take-home, $10,000 costs, 25% tax and 65% of 230 days billable gives about $602 a day or $86 an hour over 7 hours.
Build your scenario
Use your actual figures where available. The output is an educational estimate based on the assumptions below.
Freelancer Rate & Tax Planner (Excel), US$15. Turn your income goal into a minimum rate and monthly tax set-aside.
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How the freelance rate works
Gross up your target take-home for tax, add business costs to get the revenue you need, then spread it over only the days you can actually bill. Enter your own tax rate; for country estimates use the US self-employment tax or UK self-employed tax calculators.
Day rate = revenue ÷ (working days × billable %)
Hourly rate = day rate ÷ billable hours
Worked example
$60,000 ÷ 0.75 = $80,000 profit, plus $10,000 costs = $90,000 revenue. 230 days × 65% = 149.5 billable days. $90,000 ÷ 149.5 = $602.01 a day; ÷ 7 hours = $86.00 an hour.
Related calculators
- Freelancer rate & tax planner template: turn this rate into a full plan with tax set-aside and a monthly budget
- Hourly to salary calculator
- US self-employment tax calculator
- UK self-employed tax calculator
- Markup calculator
- Break-even calculator
Frequently asked questions
How do I calculate my freelance day rate?
Divide the revenue you need (take-home grossed up for tax, plus costs) by your billable days. $90,000 ÷ 149.5 days ≈ $602 a day.
Worked example: what hourly rate do I need for $60,000 take-home?
With $10,000 costs, 25% tax, 230 working days, 65% billable and 7 hours a day, about $86 an hour.
Why not divide salary by 260 days?
Freelancers are not paid for admin, sales, holidays or gaps between clients. The billable share accounts for that.
Which tax rate should I enter?
Your own blended estimate. Use the US or UK self-employed tax calculators for a country-specific figure.
Educational information only; not financial, tax, legal, or investment advice.