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Freelance Rate Floor Calculator
Enter what you need to earn and the hours you can really bill. The result is the floor, not the ceiling.
The tax set-aside covers income tax and self-employment contributions. Overhead is everything the business pays before your own income. A 100% set-aside is not a meaningful rate.
The formula
Revenue = (income + overhead) ÷ (1 − tax). Hourly floor = revenue ÷ (billable hours × weeks worked). The day rate assumes eight billable hours; if your days include admin, use the hourly rate instead.
What it does not include
This is a floor for labour, not a project quote. It excludes profit beyond your target income, unpaid vacation beyond the weeks you entered, and the risk premium for late-paying clients.
Frequently asked questions
How is this different from dividing a salary by 2,080?
2,080 assumes every working hour is billable and paid, with no overhead or holidays. This calculator uses the hours you can actually invoice and grosses up for tax and overhead.
What tax rate should I use?
Use your expected effective rate, not the top marginal rate. If you are unsure, start at 25–30% and revise after your first full year of accounts.
Can I use it for a day rate?
Yes. The day-rate output assumes eight billable hours. If a client day includes meetings and admin, divide your target revenue by actual billable days instead.