Free tool

Freelance Day Rate & Hourly Rate Calculator

Start from the income you want, then account for the things employees get for free: holidays, bank holidays, sick days, pension and the hours you cannot bill.

100% freeNo signupPre-tax, before VAT
What you want to earn
What you'd want as a salary — before Income Tax and National Insurance.
Time you can actually bill
Sales, admin, invoicing and chasing payments.
For quiet months and gaps between clients.
Your day rate
Hourly rate
Working days in a year
Billable days
Revenue needed
Equivalent salary ÷ 260 days

How the calculation works

  1. Revenue needed = (target income + expenses + pension) × (1 + buffer).
  2. Working days = 260 weekdays − holiday − bank holidays − sick/training days.
  3. Billable days = working days × (1 − non-billable %).
  4. Day rate = revenue needed ÷ billable days. Hourly rate = day rate ÷ billable hours per day.

Why freelancers undercharge

Dividing a salary by 260 days assumes you bill every weekday of the year. Employees are paid for holidays, bank holidays, sick days and the time they spend in meetings. You aren't — so those costs have to be built into the rate you charge on the days you do bill.

And remember: a rate only pays if the invoice does. Late payment eats directly into your income — see what it is costing you.

FAQ

Frequently asked questions

Why is my day rate so much higher than salary ÷ 260?

Because you will not bill 260 days. After holidays, bank holidays, sick days and admin/sales time, most freelancers bill 140–190 days a year — and you pay your own expenses and pension.

Is the income figure before or after tax?

Before tax. Enter the pre-tax profit you want; Income Tax and National Insurance come out of that, just like a salary.

What is a sensible non-billable percentage?

Commonly 20–40%: sales, admin, invoicing, chasing payments and learning. New freelancers usually underestimate it.

Should I charge VAT on top?

If you are VAT-registered, yes — the rate here is before VAT. Registration is compulsory once your taxable turnover passes the VAT threshold.

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