Freelance Rate Calculator
Work out the hourly or day rate you need to charge to hit your income goal.
Hourly rate to charge
₹1,125
Day rate to charge
₹5,625
Required annual revenue
₹13,50,000
How this is calculated
Rate = (desired income + business expenses) ÷ total billable hours in the year. "Business expenses" should cover the things a salaried job would otherwise absorb for you: taxes you set aside yourself, software, insurance, and unpaid time off, not just tools. This is gross revenue before income tax.
How to use this calculator
- Enter your desired annual income.
- Enter working weeks, hours, expenses, and target billable hours.
- Review the required hourly and daily rate.
- Adjust the assumptions for leave, taxes, and non-billable work.
What your result means
The required rate is the amount you need to charge to reach your income target after accounting for the assumptions entered.
How it is calculated
The calculator spreads the income target and expenses across realistic billable hours. Non-billable time reduces the number of hours available to earn revenue.
Example
If you want ₹12 lakh annual income but can bill only 1,000 hours after leave and admin work, your required hourly rate must reflect that limited capacity.
Assumptions and limitations
- Your billable-hour estimate is realistic.
- The income target is before or after tax according to your inputs.
- Client discounts, payment delays, bad debt, and platform fees should be added to expenses where relevant.
Frequently asked questions
Why is my required freelance rate higher than my salary equivalent?
Freelancers often cover unpaid leave, tools, taxes, insurance, sales time, and gaps between projects.
What are billable hours?
Billable hours are hours directly charged to clients; proposals, admin, marketing, and learning time are usually non-billable.