Freelance hourly rate calculator
Calculate your ideal freelance hourly rate based on target income, business costs, billable hours and tax. Set sustainable pricing.
- Free, no sign-up
- No data stored
- Reviewed 2026-01-15
Your details
Results
- Day rate
- £297.83
- Revenue needed
- £68,500.00
- Worked hours
- 1,840
- Billable hours
- 1,288
- Tax and costs
- £23,500.00
- Monthly revenue target
- £5,708.33
70 %
Utilisation table
| Billable share | Billable hours | Hourly rate | Day rate |
|---|---|---|---|
| 50 % | 920 | £74.46 | £595.65 |
| 60 % | 1,104 | £62.05 | £496.38 |
| 70 % | 1,288 | £53.18 | £425.47 |
| 80 % | 1,472 | £46.54 | £372.28 |
| 90 % | 1,656 | £41.36 | £330.92 |
| 100 % | 1,840 | £37.23 | £297.83 |
Utilisation note
About the Freelance Rate Calculator
Work backwards from your desired annual income to find the hourly rate you need to charge. The calculator factors in business expenses, non-billable time, holiday, tax and an effective utilisation rate.
Many freelancers under-price because they forget to account for admin time, software costs, sick days and employer-equivalent tax contributions.
How to use the Freelance Rate Calculator
- Enter your target annual net income.
- Add annual business costs (software, insurance, etc.).
- Set weeks worked per year and days per week.
- Enter hours per day and estimated billable percentage.
- Set your marginal tax rate for gross-up.
Frequently asked questions
What is billable percentage?
The share of working hours you can actually invoice for. Admin, marketing, learning and unbilled meetings reduce it. 60–75% is realistic for most freelancers.
Should I add profit margin on top?
The "target income" already represents your desired earnings. If you want to build a buffer or reinvest in the business, increase the target.
How do I handle project-based work?
Estimate total hours for the project and multiply by your hourly rate. Add a contingency of 10–20% for scope creep.