How to set your freelance rate: a simple sum that covers holidays, costs and quiet weeks
By SendPay Business · · 2 min read
- 1Type in your own numbers
- 2The tool works it out
- 3See the answer clearly
Most new freelancers take their old salary, divide by 37.5 hours a week, and charge that. It almost always leaves them short. Here's a sum that doesn't.
Start from the income you want
Pick the yearly income you want before tax. That's the number your rate has to produce, not your old hourly pay.
Add what the business costs
Laptop, software, insurance, phone, travel, an accountant, training, and the card fees taken from what clients pay you. Add them up for a year and put them on top of the income.
Try it
Name your platform and watch it come to life
Type a name, tap a colour and pick what it does. The phone changes as you go.
Colour
What it does
Design and preview your whole platform free, then launch when you are ready.
Count the hours you can really bill
This is where most people go wrong.
0 of 3 done
Tick each step as you do it, so you can see what is left.
Divide, then sense-check
Income plus costs, divided by billable hours, is your minimum hourly rate. Multiply by the hours in your working day for a day rate. If it looks high, that's normal: it's paying for the time nobody else pays for.
Then check it against what clients in your field pay. If the market pays less, work on cutting unbillable time or niching down rather than just dropping the rate.
Get paid on time
A good rate only helps if the money arrives. Put clear payment terms and a due date on every invoice, and give clients an easy way to pay by card.
How it works
Your own money app- 1Name it and pick your colours
- 2Choose what it does
- 3Launch when you are ready
Why sign up
Create your free SendPay account
It's all about creating your own financial platform with ease. Start with a free account today.
- 🪪A free business accountOpen it in about a minute with your business name, email, password and mobile. No card and no documents to start.
- 💳Get paid from day oneTake card payments, and share your own payment link and invoices so customers pay in a click.
- 🌐A free business websiteFree to build, free to publish and free to keep, with unlimited visits.
- 🚀Your own financial platformDesign and preview your whole platform free, then launch when you are ready.
SendPay Business is a technology company, not a bank. Accounts, cards and payments are powered by licensed partners.
Questions people ask
Can I just use a calculator?
Yes. The free hourly rate calculator does this sum for you from your own numbers.
Open the hourly rate calculator →Should I charge by the hour or by the day?
Day rates are simpler for longer jobs and stop clients counting minutes. Hourly suits small, unpredictable tasks. Many freelancers quote a fixed price per project based on their day rate.
Does the rate include tax?
The income figure is before tax, so income tax and National Insurance come out of it. If you're VAT registered, add VAT on top of your rate on the invoice.
Read next
Spotted a mistake or something out of date? and we'll fix it. How our guides are made
This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. Other companies named in this guide are reference points only and are not affiliated with SendPay Business.