Freelance Day Rate Calculator
Many freelancers undercharge because they divide their old salary by 260 working days. That ignores holidays, sick days, admin time, business expenses, and tax. This calculator works backwards from the take-home income you actually want to the day rate you must charge.
Note: This is a simplified estimate. Tax varies by country and structure — confirm with an accountant before relying on it.
How this calculator works
The calculator starts from the take-home income you want, then adds back the money that never reaches your pocket. First it adds your annual business expenses, because you have to earn that before you profit. Then it grosses the total up for tax, since your day rate is taxed before you keep it. Finally it divides by the number of days you can actually bill in a year — not 365, and not even 260, once you remove holidays, sick days, admin, and marketing time.
Worked example
Say you want to take home $40,000, you have $5,000 of expenses, a 25% effective tax rate, and 220 billable days. Add expenses: $45,000. Gross up for tax: $45,000 ÷ 0.75 = $60,000. Divide by 220 days: about $273 per day. Charging much less than that means you are quietly funding your own clients.
Frequently asked questions
How many billable days should I use?
Most full-time freelancers bill 200–230 days a year after holidays, sick days, admin, and gaps between contracts. If you are new or part-time, use a lower figure to stay realistic.
Should I include tax in my day rate?
Yes. Your day rate is income, and income is taxed. This calculator grosses your target up by your effective tax rate so the rate you quote actually leaves you with the take-home you wanted.
Why is my calculated rate higher than my old salary divided by working days?
Because a salary hides paid holidays, employer pension contributions, equipment, and downtime. As a freelancer you cover all of that yourself, so your rate has to be higher to match the same lifestyle.