Calculate your ideal hourly rate, day rate & project pricing. Know your worth.
Pricing your freelance services correctly is the difference between a thriving business and constant financial stress. Most new freelancers undercharge by 30-50% because they make critical calculation errors. This calculator eliminates the guesswork.
A salaried employee has 2,080 billable hours per year (40 hrs × 52 weeks). A freelancer does NOT. You spend 40-60% of your time on non-billable work: finding clients, writing proposals, invoicing, attending meetings, marketing, learning new skills, and managing admin. Realistic billable hours: 1,000-1,200 per year.
Your freelance rate isn't just your salary. It must cover:
Both have their place. Hourly works well for ongoing maintenance and undefined scopes. Project pricing (value-based) is better when your work creates clear value for the client. If you build a website that generates $200K/year for a client, charging $15K is a bargain — even if it only took you 40 hours ($375/hr effective rate).
Take desired annual income + business expenses + taxes, divide by billable hours. Example: $80K income + $15K expenses + $20K taxes = $115K ÷ 1,000 billable hours = $115/hour.
Realistic: 1,000-1,200 per year (not 2,080). You spend 40-60% on admin, marketing, invoicing, meetings, learning. Most freelancers only bill 25-30 hours per week.
Depends on skill. Web developers: $75-150/hr. Designers: $50-125/hr. Writers: $50-100/hr. Virtual assistants: $25-50/hr. Consultants: $150-500/hr. Compete on value, not price.
Day Rate = Hourly Rate × 7 (not 8). A 7-hour day accounts for breaks. If hourly is $100, day rate = $700.
Absolutely! Set aside 25-35% of every payment for taxes. Your rate MUST include tax coverage. If you want $80K after tax, earn ~$110-115K gross. This is the #1 new freelancer mistake.
Use value-based pricing: estimate hours × rate, then price based on client value. If your work saves them $50K, charging $10K is a bargain regardless of hours.
Include: health insurance ($400-800/mo), software/tools, office, retirement (20-25%), PTO, business insurance, education, marketing costs, and unpaid admin time.
Common reasons: using 2,080 hours not 1,000-1,200, not including self-employment tax, ignoring unpaid time, not factoring insurance/retirement, fear of losing clients. Raise rates 20% — you'll lose few.