How do I work out my freelance hourly rate?

Add the income you want to your yearly business costs, then divide by the hours you can actually bill in a year: working weeks, minus holidays and sick days, times billable hours per week.

Why is my freelance rate higher than an employee's hourly pay?

Freelancers pay their own costs, get no paid holiday or sick pay, and spend time on admin and finding work that nobody pays for. The rate has to cover all of that.

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Freelance hourly rate calculator

Work out what to charge from the income you want and the hours you can really bill. Free, no sign-up, nothing leaves your browser.

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Income you want a year £ (before tax)Business costs a year £Weeks off a year (holiday, sick, quiet)Hours you can bill a weekHours in a working day

Charge per hour

£33

Day rate

£231

Billable hours a year

1,150

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Why the number is higher than you expect

An employee is paid for every working hour, plus holidays and sick days. A freelancer is paid only for the hours a client is billed. Admin, quotes, chasing invoices and finding the next job all come out of your unpaid time, so most freelancers bill far fewer than 40 hours a week.

What to count as costs

Equipment, software, insurance, phone, travel, accountant, training, and the card fees taken from what clients pay you. Tax and National Insurance come out of the income figure, so set that to what you want before tax.

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