Freelance Day Rate Calculator
Calculate freelance day rate from your own entered figures.
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Currency: Amounts are calculated in the currency you select; this site does not convert between currencies and does not use live exchange rates.
What this tool does
Calculate freelance day rate from your own entered figures. Simplified tax gross-up, not a self-employment tax return calculation. Billable time excludes administration and marketing.
How to use the Freelance Day Rate Calculator
- Enter or select desired annual take-home.
- Enter or select annual business expenses.
- Enter or select vacation weeks.
- Enter or select work hours per week.
- Enter or select billable hours (%).
- Enter or select estimated tax on profit (%).
- Enter or select hours per billable day.
- Read the calculated result; change any measurement to compare alternatives.
Formula
revenue needed=take-home/(1−tax/100)+business expenses; annual billable hours=(52−vacation)×weekly hours×billable%/100; hourly=revenue/billable hours
- take
- Desired annual take-home
- expenses
- Annual business expenses
- vacation
- Vacation weeks
- hours
- Work hours per week
- billable
- Billable hours (%)
- tax
- Estimated tax on profit (%)
- day
- Hours per billable day
Simplified tax gross-up, not a self-employment tax return calculation. Billable time excludes administration and marketing.
Worked example
For freelance day rate calculator, the following measurements illustrate the exact method: Desired annual take-home: 60000; Annual business expenses: 10000; Vacation weeks: 4; Work hours per week: 40; Billable hours (%): 60; Estimated tax on profit (%): 25; Hours per billable day: 8.
Inputs
- Desired annual take-home60000
- Annual business expenses10000
- Vacation weeks4
- Work hours per week40
- Billable hours (%)60
- Estimated tax on profit (%)25
- Hours per billable day8
Result
- Required day rate$625.00
- Hourly rate$78.13
- Day rate$625.00
- Required annual revenue$90,000.00
Results explained
- Required day rate
- Required day rate from the formula above. Simplified tax gross-up, not a self-employment tax return calculation. Billable time excludes administration and marketing.
- Hourly rate
- Hourly rate from the formula above. Simplified tax gross-up, not a self-employment tax return calculation. Billable time excludes administration and marketing.
- Day rate
- Day rate from the formula above. Simplified tax gross-up, not a self-employment tax return calculation. Billable time excludes administration and marketing.
- Required annual revenue
- Required annual revenue from the formula above. Simplified tax gross-up, not a self-employment tax return calculation. Billable time excludes administration and marketing.
Frequently asked questions
revenue needed=take-home/(1−tax/100)+business expenses; annual billable hours=(52−vacation)×weekly hours×billable%/100; hourly=revenue/billable hours
Simplified tax gross-up, not a self-employment tax return calculation. Billable time excludes administration and marketing.
No. All numbers are entered by you or come from the dated reference table shown on this page; calculations run locally.
This is an estimate, not financial, tax or legal advice. Verify the inputs and output with official sources and a qualified professional.
Check period consistency, currency, percentage inputs and the assumptions: Simplified tax gross-up, not a self-employment tax return calculation. Billable time excludes administration and marketing.