Most freelancers set their first rate by guessing, or by copying an employee's hourly wage, and then wonder why the money runs out. The calculator above works backwards from what you actually want to earn to the minimum rate that gets you there.
How it works
- Start from your target income: the yearly amount you'd want as a salary, before income tax.
- Add your business costs: software, insurance, equipment, an accountant, and a pension, since nobody pays that for you any more.
- Subtract time off: holidays, public holidays, and sick days. Seven weeks a year is a realistic starting point.
- Count only billable hours: sales, admin, invoicing, and learning are work, but no client pays for them. Most freelancers bill 50-70% of their working time.
- Add a buffer for quiet months and late payers.
Rate = (income + costs) × (1 + buffer) ÷ billable hours per year.
A floor, not a price
The result is the least you can charge and still hit your target. Your actual price should reflect the value you create for the client, the market, and your experience. Many freelancers move to day rates or fixed project prices once they know their floor. How to set your freelance hourly rate covers pricing strategy in more depth.
Bill every hour at that rate
A good rate only helps if every billable hour makes it onto an invoice. In Billebly you set an hourly rate per project, track time with a timer or manual entries, and turn unbilled hours into an invoice with a payment link in one click. Try the timesheet generator to see how it works.
Frequently asked questions
By the Billebly team · Last updated 3 October 2026