Plot No. 76 · Business & Work
Freelance Day Rate Calculator
Work out the day rate you need to charge as a freelancer or contractor. It takes your target income, adds business overheads and a tax buffer, then spreads that over only your billable days after accounting for time spent on admin, marketing and holidays.
Assumes an 8-hour day for the hourly equivalent. Revisit the rate at least yearly as overheads, tax rules and your non-billable time change.
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Frequently asked questions
Why is this different from a simple salary-to-hourly conversion?
An employee's hourly rate assumes every working hour is paid. A freelancer only bills for billable hours, still pays for holidays and sick days out of that rate, and covers their own business overheads and tax reserve, so the day rate needs to be noticeably higher for the same take-home income.
What counts as non-billable time?
Admin, invoicing, finding new clients, training and unpaid pitches all eat into your working days without generating income. Many freelancers find 20 to 30 percent of their time goes to non-billable work, though it varies a lot by industry and experience.
What should I put in the tax and buffer percentage?
This is money set aside before you see it as spendable income, covering tax, National Insurance or self-employment tax, plus a cushion for slow months. A quarter of gross earnings is a common starting point, but check your own tax position for an accurate figure.
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