Type a rate into any box and the others update instantly, based on your working hours and billable weeks. Then price a project from an estimate, or check what a fixed fee really pays per hour.
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Answer day-rate and hourly questions instantly.
Put retainers, day rates and fixed fees on the same scale.
Make sure your rate covers taxes and downtime.
A common mistake is dividing a previous salary by 2,080 working hours. Freelancers need to cover unpaid time off, non-billable hours, business costs and both sides of social taxes, so their hourly rate is usually much higher than an employee’s.
Day rates are popular because they reward efficiency and are simpler to invoice. Project pricing goes further: if you finish faster, your effective hourly rate rises.
Best for open-ended or unclear work.
Common for contracts and on-site work.
Rewards speed and expertise.
Day rate = hourly rate x billable hours per day. At $75 an hour and 8 hours a day, the day rate is $600.
Subtract holidays, sick days, training and gaps between clients from 52. Many freelancers use 44-48 weeks.
Freelancers are not paid for holidays or downtime, and they cover their own taxes, equipment and benefits. Use the target income tool to price for that.
Estimate the hours, multiply by your hourly rate and add a contingency (often 10-25%) for unknowns and revisions.
Hours spent on admin, sales, invoicing and learning. If 25% of your time is non-billable, only 75% of your working hours earn money.
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