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Freelance hourly rate calculator

Freelancers underprice because they divide a salary by 40 hours. Enter your target income, costs, tax share and real billable hours to see the rate that works.

The figures behind it · Billable share of a week
about 60 %
Weeks off (leave, sick, bank holidays)
6 or more
Formula
(income + costs) ÷ (1 − tax) ÷ hours

Your figures

What you want left after tax and contributions.

Software, accountant, insurance, equipment, workspace.

The share of revenue that goes to income tax and National Insurance. Around 25 % for a sole trader on a mid income.

Hours you can invoice. Admin, sales and training are not billable; 25 of 40 is realistic.

How the rate is built

Start from what you need to keep and work up to what you must invoice.

Revenue needed
Target net income plus business costs, grossed up for tax and contributions: dividing by (1 − tax share) gives the revenue that leaves the net you want.
Billable hours
Hours you can invoice per week times the weeks you work. Admin, marketing, quoting and training are unpaid; 25 of 40 hours is a realistic ratio.
Rate
Revenue needed divided by billable hours. The day rate is eight of those hours.
Source and rules

Jober

Rule set 2026.1, last checked on October 12, 2026.

The result is an estimate based on the statutory rules. Your contract, collective agreement or tax code may change the figures. It is not tax or legal advice.

Frequently asked questions

What hourly rate replaces a £40,000 salary?

Start from the take-home you want to keep. £2,500 net a month, £300 of costs, 25 % tax and 1,150 billable hours give £2,800 × 12 ÷ 0.75 ÷ 1,150, about £39 an hour or £312 a day. That is roughly what a £40,000 salary pays once the employer's pension and paid holiday are counted.

What tax share should I enter?

For a sole trader on a mid income, income tax and Class 4 National Insurance come to roughly 25 % of profit. Through a limited company the mix changes but the total is similar.

Should I charge per hour or per day?

Clients buying blocks of time expect day rates; projects with a defined scope are better priced fixed. The calculator gives both the hourly and the eight-hour day rate.

What next?

Know what you are worth? Browse the latest jobs and compare offers with your figures in hand.

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