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CALCULATOR · Finance

Freelance Hourly Rate Calculator

The hourly and day rate that covers the income you want, tax, business costs and the hours you can actually bill.

Show formula
Hourly rate = (net income ÷ (1 − tax rate) + business costs) × (1 + safety margin) ÷ (working days × hours per day × billable share)

Method reviewed:Cost-plus rate: net income grossed up by one effective tax rate, plus business costs and a safety margin, divided by billable hours · reviewed October 2026

Inputs

What you want to keep after tax and business costs — your take-home pay.

—

Your effective rate on profit: income tax and social contributions together. Last year’s return or an accountant gives the figure.

Software, equipment, insurance, accounting, workspace, training — everything the business pays for in a year.

—

An extra share on top for slow months, late payers and savings.

75

Hours you can invoice out of all working hours — sales, admin and email take the rest. 60–80% is common.

Result

Your result appears here

Enter Net income per year and the result fills in as you type.

How it works

  1. Enter the net income you want to keep each year, your effective rate of tax and social contributions, and your yearly business costs.
  2. Set your working time — days per week, hours per day, vacation, public holidays and sick days — and the share of those hours you can bill.
  3. Read the hourly and day rate, the revenue to invoice each month and year, and what every billed hour pays for.

Frequently asked questions

Why is a freelance hourly rate so much higher than an employee’s wage?

Because the rate has to pay for what an employer would cover: income tax and social contributions, the tools and insurance of the business, paid time off, and the hours spent on sales and admin that no client pays for. At 75% billable, only three of every four working hours earn anything.

What billable share should I assume?

Most freelancers bill 60 to 80% of their working hours; the rest goes on finding clients, quoting, invoicing and email. A new business with few clients may bill under half. A few weeks of tracking your own time gives the real figure.

Which tax rate should I enter?

Your effective rate: total income tax and social contributions divided by profit, not your top band. Last year’s tax return or an accountant gives it. The calculator applies it as one flat rate, so treat the result as a planning figure.

Does the rate include VAT or sales tax?

No. The result is your rate before any VAT or sales tax you have to add to invoices; if you charge VAT, it goes on top.

Examples

50,000 a year net, 30% tax, 6,000 of costs, 25 vacation days, 10 holidays, 5 sick days, 8 hours a day, 75% billable
58.66 an hour across 1,320 billable hours, or 469.26 for an 8-hour day: 77,428.57 to invoice a year, 6,452.38 a month.
The same income with a 10% safety margin and only 60% of hours billable
80.65 an hour and 645.24 a day: 85,171.43 a year over 1,056 billable hours.

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