Freelance Rate Calculator

Behind the result

About this Tool

Estimate an hourly and day rate from your income goal, expenses, tax assumption, and billable time.

How it works

Grosses up target income plus annual business expenses by the effective tax rate, then divides by true billable hours: weekly billable hours times fifty-two weeks minus time off. The day rate assumes a five-day week of the entered billable load.

Worked example

A $60,000 income goal plus $12,000 in expenses, with a 25% tax assumption, gives ($60,000 + $12,000) ÷ 0.75 = $96,000 in gross revenue needed. At 25 billable hours per week and 4 weeks off, there are 1,200 billable hours per year. The estimate is $80 per hour and $400 per day.

Assumptions and limits

This simplified planning model grosses up both your income goal and expenses using a single tax percentage. It does not calculate actual taxes, deductions or jurisdiction-specific obligations. Billable hours exclude unpaid administration and sales work. A day rate assumes five working days per week: in this example, five billable hours per day, not eight.

Is the suggested rate a market price or guaranteed income?

Neither. It is a planning estimate under your inputs, assuming those billable hours are sold and paid. Compare different workloads and time off, then consider demand, experience and the value of your work. The pricing reference below provides context; the calculator uses OnTap’s simplified model described above.

Reference and maintenance

BDC: factors to consider when pricing products and services

Guidance maintained by OnTap. Content updated September 17, 2026.

Use results as a practical aid, and verify important decisions against your own source data and qualified guidance.