Freelance Day Rate Calculator
What to charge per day and per hour so that your freelance income actually matches the salary you have in mind, once holidays, unbillable time and costs are counted.
- Free, no sign-up
- Runs in your browser, nothing is stored
- Formula and worked example included
Freelance Day Rate Calculator
Enter your figures to see results.
What should I charge as a freelancer?
More than you think. A freelancer who wants the equivalent of a £55,000 salary cannot charge £55,000 ÷ 230 working days. Only around 60% of those days are billable once selling, admin and learning are counted, and business costs, a safety buffer and the lack of employer pension and sick pay all have to come out of the rate. The honest figure is closer to £485 a day, or £65 an hour.
How to use this calculator
- Enter the income you want to end up with for the year, before personal tax, as if it were a salary.
- Add your annual business costs and set your working pattern: weeks off, days a week, hours a day.
- Set the share of working days you realistically bill. If you are not sure, 60% is a sensible starting point.
What your result means
How to read the figure, what counts as normal, and what to do about it.
Why freelance rates look high and are not
Clients compare a day rate with their own daily salary and conclude freelancers are expensive. The comparison is wrong on both sides. The freelancer's rate has to fund holiday, sickness, pension, equipment, insurance and the days spent finding the next job. The employee's salary understates what they cost their employer by 20 to 30% once employer National Insurance, pension and overheads are added. Put both on the same footing and a £485 day rate for £55,000 of income is roughly what an employer pays for a £55,000 employee.
Use that comparison in negotiations. It is the most persuasive answer to "that seems a lot".
What is a realistic billable percentage?
| Situation | Billable share |
|---|---|
| Long contracts through an agency (IT, engineering) | 80 to 90% |
| Established freelancer with repeat clients | 60 to 75% |
| First two years, building a client base | 40 to 55% |
| Creative work with lots of pitching | 45 to 60% |
Track it for a quarter. Most freelancers who think they bill 80% of their time find the true figure is nearer 60% once the diary is examined honestly.
Day rate or hourly rate?
Day rates suit longer engagements and stop the clock-watching that hourly billing invites. Hourly rates suit small, unpredictable jobs and clients who need to see the detail. Whichever you quote, price the value of the outcome where you can: a rate is a floor, not a ceiling, and a project that saves a client £50,000 is not worth less because it took you two days.
Review the rate every year. Costs rise, skills improve, and clients who were happy at £400 rarely object to £425 if they are told in advance.
Worked example: a freelance marketing consultant
She wants £55,000 a year and spends £6,000 on software, insurance, her accountant and a co-working desk. She takes six weeks off, works five days of 7.5 hours, bills 60% of her days and wants a 10% buffer.
Working days: 46 × 5 = 230. Billable days: 230 × 60% = 138.
Revenue needed: (55,000 + 6,000) × 1.1 = £67,100.
Day rate: 67,100 ÷ 138 = £486. Hourly rate: £65. An employer would pay about £66,650 for a £55,000 employee, so her day rate is not expensive by comparison.
Frequently asked questions
What is the average freelance day rate in the UK?
It varies hugely by field: £250 to £400 for many creative and marketing roles, £400 to £700 for experienced IT contractors and consultants, and over £1,000 for specialist legal, finance and technology work. Your own number should come from your costs and target, not from an average.
Should I charge different rates to different clients?
A rate card with a standard rate is simplest, but it is normal to charge more for short, urgent or unpleasant work and to agree a lower rate for a long, guaranteed contract that raises your billable percentage.
Do I add VAT to my day rate?
If you are VAT-registered, quote the rate and state that VAT is added. Business clients reclaim it, so it does not affect their cost. Consumers cannot, so quote them the VAT-inclusive figure.
How do I raise my rate with existing clients?
Give notice of at least a month, tie it to a date such as the new tax year or the anniversary of the engagement, and state the new rate without apology. A 5 to 10% annual increase is rarely challenged.
The maths behind this calculator
For anyone who wants to check the working or rebuild it in a spreadsheet.
The formula
Working days = (52 − Weeks off) × Days per week Billable days = Working days × Billable % Revenue needed = (Target income + Business costs) × (1 + Buffer %) Day rate = Revenue needed ÷ Billable days Hourly rate = Day rate ÷ Hours per day Employer comparison = Target income + Employer NI (15% above £5,000) + 3% pension + ~£2,500 overheads
Assumptions and limits
- Target income is before personal income tax and National Insurance. Use the salary calculator to see what it means after tax.
- The employer comparison uses standard employer NI, the 3% auto-enrolment minimum and a flat £2,500 for equipment and overheads.
- The buffer is applied to income and costs together; it is a planning margin, not a profit margin.
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