Calculator

Freelance Rate Calculator

Enter your numbers below. We'll tell you the minimum hourly rate your business needs to be sustainable, and what to charge to build a buffer.

Currency
Display in:
Income & Tax
28%
Time & Capacity
60%
Your rates
Minimum viable
$—
The floor. Charging below this means falling short of your target income.
Recommended
+20% buffer
Covers scope creep, slower months, and unexpected costs.
Premium positioning
$—
+40% above minimum. Signals expertise and builds profit margin.
Recommended day rate
$—
Based on recommended hourly × hours per day
Gross income target —
Tax withheld (28%) —
Annual business expenses —
Total annual revenue needed —
Working weeks (46 weeks × 40 hrs) —
Billable hours (60% of total) —
Minimum viable hourly rate —

The formula, explained

The minimum viable rate is the hourly number at which your business covers your income target (after tax) and your running costs. Charge less than this and you're subsidising your clients.

Step 1: Gross income needed = desired take-home ÷ (1 − tax rate)
Step 2: Total revenue needed = gross income + annual expenses
Step 3: Billable hours = working weeks × hours/week × billable %
Step 4: Minimum rate = total revenue ÷ billable hours

The recommended rate adds a 20% buffer. This isn't padding. It's what covers the inevitable: a project that runs over scope, a client who pays late, or a month where you close nothing. The premium rate adds 40% and signals that you're not competing on price.

One number people miss: the billable percentage. Most freelancers work 40 hours a week and assume they're billing 35. The actual number, once you subtract sales calls, proposals, invoicing, admin, and client communication, is usually closer to 20 to 24. If your result feels high, that's often why.

What to do with your number

Your minimum viable rate is a floor, not a target. The question isn't whether you can charge it. It's whether your positioning and pipeline support it. A rate no one will pay is a pricing problem. A rate everyone accepts without hesitation is a positioning problem.

The next two things worth reading:

OS Framework How Your Pricing & Packaging Should Work The full framework for structuring your rates, packaging your services, and moving away from reactive pricing. Tool Comparison Best CRM Tools for Freelancers Your rate only works if your pipeline is consistent. Here's what to use to manage leads and clients without the chaos.