Business Tool
Day Rate Calculator
Calculate the day rate and hourly rate you need to charge to hit your income goals as a freelancer.
Freelance Rate Calculator
Find the hourly and day rates you need to charge to hit your income goals.
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Suggested Rates
- Hourly Rate
- $140.06
- Day Rate (8h)
- $1,120.45
- Monthly revenue target
- $14,005.60
- Annual gross revenue target
- $168,067.23
- Working weeks
- 48
- Total billable hours/year
- 1,200
Disclaimer: This calculator provides informational estimates only and is not tax or financial advice. Actual rates depend on your market, expenses, tax bracket, and business structure. Consult a tax professional for personalized guidance.
Frequently asked questions
- How do I set my day rate?
- Start with your target annual take-home income, add your tax reserve and business expense percentages, then divide by your total billable hours per year. A standard day is 8 billable hours, so multiply your hourly rate by 8 for your day rate.
- Why should freelancers charge more per hour than employees?
- Freelancers must cover self-employment taxes, health insurance, retirement savings, business expenses, and unpaid time off. A freelancer's hourly rate is typically 1.5 to 2 times an equivalent employee hourly rate.
- How many billable hours should I plan per week?
- Most freelancers bill 20-30 hours per week. The remaining time goes to marketing, admin, invoicing, and professional development. Using 25 billable hours per week is a common starting point.