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Freelance rate calculator

Freelance Rate Calculator UK

Work out the hourly rate or day rate you need to charge to reach your income goal, after expenses, holidays and non-billable time.

Recommended day rate

£496.68

Minimum £431.89

Recommended hourly rate

£66.22

Minimum £57.59

Breakdown

Working days / year
260
Available working days
215
Billable days / year
150.5
Income goal + expenses
£65,000.00
With buffer
£74,750.00
Monthly revenue target
£6,229.17

This calculator estimates the rate you need to charge before personal tax. It is not a tax calculator.

How the calculation works

workingDays = daysPerWeek × 52

availableDays = workingDays − holidays − sickAdmin

billableDays = availableDays × billable% ÷ 100

annualTarget = (income + expenses) × (1 + buffer% ÷ 100)

dayRate = annualTarget ÷ billableDays

hourlyRate = dayRate ÷ hoursPerDay

Why billable days matter

You don't bill clients for sales calls, admin, invoicing, learning or writing proposals. Most established freelancers bill 60–75% of their working time. New freelancers often bill less. Don't divide your target income by total working days — divide by the days you actually invoice for.

Examples

Designer

£55k take-home + £6k tools/software, 70% billable, 15% buffer → roughly £470 day rate.

Consultant

£80k take-home + £4k expenses, 60% billable (lots of business development), 20% buffer → roughly £820 day rate.

Questions

  • How do I calculate my freelance hourly rate?

    Add your target take-home income to your business expenses, then divide by the hours you can realistically bill in a year (after holidays, sick days, admin and non-billable time).
  • How do I calculate my day rate?

    Same maths, but divide by billable days per year instead of billable hours. Day rates are common for ongoing or week-long engagements.
  • What is billable time?

    The hours or days you actually invoice clients for. Sales calls, admin, learning and proposal writing are usually not billable.
  • Should I include tax in my freelance rate?

    The figure you enter here is your target take-home before personal tax. Use HMRC's calculators or speak to your accountant to plan for income tax and National Insurance.
  • Why is my freelance rate higher than an employee salary?

    Because you pay your own pension, holidays, sick days, equipment and tax — and you don't bill 100% of your working time. The same take-home income needs a higher headline rate.
  • How often should I review my rate?

    Annually at minimum, plus whenever your costs, target income or billable time change significantly.
PoundKit tools are for general information and planning only. They do not constitute accounting, tax, financial or legal advice. Please check with a qualified professional and refer to GOV.UK for official guidance.

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