Freelancer Day-Rate Calculator
Add your target monthly income to your monthly business expenses, then divide by your billable days per month to get your day rate — and divide that by your hours per day for your hourly rate. This is a planning estimate from your own numbers, not tax or legal advice.
See also: Website Project Quote Calculator, Percentage Increase Calculator, Payment Calculator
How it is calculated
Day Rate = (Target Monthly Income + Monthly Business Expenses) ÷ Billable Days per Month; Hourly Rate = Day Rate ÷ Hours per Day
Worked example: Setting a $275 Day Rate from $5,000 Monthly Income
$5,000 target monthly income, $500 monthly business expenses, 20 billable days per month, 8 hours per billable day.
- Add income and expenses: $5,000 + $500 = $5,500 to cover each month.
- Divide by billable days: $5,500 ÷ 20 = $275.00 per day.
- Divide by hours: $275.00 ÷ 8 = $34.375, rounded to $34.38 per hour.
- Project the year: $5,500 × 12 = $66,000.00 annual total; 20 × 12 = 240 annual billable days.
$275.00 per day and $34.38 per hour.
Frequently asked questions
How many billable days should I enter?
Enter only the days you realistically expect to bill clients in a month. Exclude weekends, public holidays, sick days, and days spent on admin, marketing, or pitching — most full-time freelancers bill 15 to 20 days a month, not all 22 weekdays.
Should I include taxes in this calculation?
No. This calculator works from the income you want to keep plus your business expenses, and it does not calculate tax, National Insurance, or any other deduction. This is a planning estimate from your own numbers, not tax or legal advice.
What counts as a monthly business expense?
Any recurring cost of running your freelance work: software subscriptions, equipment, phone and internet, insurance, accounting, and workspace costs. One-off purchases can be spread across the months they cover.
Why is my day rate higher than my old salary divided by working days?
Because you now cover your own expenses, holidays, sick days, and non-billable time, and you only earn on days you bill. A day rate built from billable days — not calendar weekdays — is what keeps your monthly income whole.
Can I use this calculator for part-time freelancing?
Yes. Enter your actual billable days per month, even if that is only a few days — the formula works the same, and your day rate stays based on the income you need from the work you bill.
Is this day rate a quote I can send a client?
No. This is a planning estimate from your own numbers (income plus expenses, divided by billable days), not a binding quote and not tax or legal advice. Use it to set your rate, then quote each project on its own scope.