Freelance Rate Calculator
Work out your ideal hourly rate and day rate. Enter your income goal and working pattern — the calculator does the rest.
How to Calculate Your Freelance Rate
Setting the right rate is one of the most important decisions you make as a freelancer. Charge too little and you will burn out. Charge too much without the portfolio to back it up and you will struggle to win work. This calculator uses a cost-plus approach — starting with what you need to earn and working backwards to find your rate.
The key insight most new freelancers miss is that not all your time is billable. You will spend time on administration, marketing, invoicing, emails, and chasing leads. Most freelancers find that only 60-75% of their working hours generate revenue. This calculator accounts for that, giving you a realistic rate rather than an optimistic one.
What to Include in Business Costs
Your business costs are everything you spend to keep your freelance business running. Common costs include:
- Software subscriptions — design tools, project management, accounting software
- Equipment — laptop, monitor, phone, camera
- Insurance — professional indemnity, public liability
- Accountant fees — typically £300-1,000/year for a sole trader
- Home office costs — a proportion of rent, utilities, broadband
- Marketing — website hosting, business cards, advertising
- Training — courses, books, conferences
Remember to also factor in tax and National Insurance. As a sole trader in the UK, you will pay income tax and Class 2/4 National Insurance on your profits. A common rule of thumb is to set aside 25-30% of your income for tax. Read our guide on allowable business expenses to make sure you are claiming everything you can.
UK Freelance Rate Benchmarks
Rates vary significantly by industry, experience, and location. Here are typical UK freelance day rates as a rough guide:
- Web developers: £300-600/day
- Graphic designers: £250-450/day
- Copywriters: £200-400/day
- Marketing consultants: £400-800/day
- Management consultants: £500-1,200/day
- Photographers: £250-500/day
- Accountants (freelance): £300-600/day
London rates are typically 20-40% higher than the rest of the UK. Your rate should reflect your experience, specialism, and the value you deliver — not just your costs. For more on pricing strategy, read our guide on setting freelance rates.
Frequently Asked Questions
How do I calculate my freelance hourly rate?
Add your target annual income and business costs together, then divide by your total billable hours per year. For example, if you want to earn £50,000 and have £5,000 in costs, working 47 weeks at 70% billable time, your hourly rate would be around £42/hr.
What is a good freelance day rate in the UK?
It depends on your industry. Web developers typically charge £300-600/day, designers £250-500/day, and consultants £400-1,000+/day. Your rate should cover income, tax, NI, pension, and all business costs.
Why should I only count billable hours?
Not all working time generates revenue. Admin, marketing, invoicing, and business development take up 25-40% of your time. Pricing on total hours means you earn less than planned.
Should I charge hourly or a day rate?
Day rates suit on-site contracts and longer projects. Hourly rates work for smaller tasks and retainers. Project-based pricing is best when scope is clear and you want to decouple income from time.
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