What day rate should you charge?
Your day rate, starting from what you want to earn
The maths starts from your target take-home pay, not from a guess.
The default 35 % is an order of magnitude only. Your real figure depends on your country and status: replace it with yours.
A day rate is not guessed by looking at what others charge. It follows from three things: the take-home pay you want, the number of days you will genuinely invoice, and what tax and expenses take on the way. The third one is what everybody underestimates.
Billable days, the decisive figure
| Item | Days | Left |
|---|---|---|
| Days in the year | 365 | 365 |
| Weekends | 104 | 261 |
| Holidays and public holidays | 36 | 225 |
| Sales, admin, training | 35 | 190 |
| Sickness, gaps between contracts | 10 | 180 |
Hence the default of 180. Assuming 220 days means paying yourself about 20 % less than planned, and it is the most common mistake among new freelancers.
What is taken between invoiced and received
- Contributions and tax, whose rate depends entirely on your country and status.
- Business expenses: hardware, software, insurance, accountant, travel. They come out before you take anything home.
The calculator keeps them apart because they behave differently: contributions are a percentage, expenses a fixed amount you must cover whatever your activity level.
Setting your price once you know the floor
| Lever | Effect | When to use it |
|---|---|---|
| Scarcity of the skill | Strong | Few people can do it in your market |
| Value produced for the client | Strong | Your work earns or saves a measurable amount |
| Urgency and constraints | Medium | Short notice, on-call, travel |
| Length of the relationship | Downward | A regular client earns a discount, not a premium |
Invoicing what you calculated
A fair day rate is worth nothing if it is invoiced late. Our invoicing software comparison ranks the tools we tested.
Frequently asked questions
How many billable days should I assume?
180 is a prudent and realistic figure for an established practice. The breakdown above starts from 365 days and removes weekends, holidays, then time spent on sales, admin and training, and finally sickness and gaps between contracts. Assuming 220 means paying yourself roughly 20 % less than planned.
Is the result a selling price?
No, it is a floor: the rate below which you miss your own targets. Your selling price sits above it, depending on how scarce your skill is, the measurable value you create for the client, and the constraints the assignment puts on you.
Does this work for an employee considering going freelance?
It gives a useful order of magnitude through the salaried equivalent line. Be careful though: that equivalent ignores what employment adds on top, paid leave, unemployment cover, health insurance and pension. A day rate that merely matches your current salary makes you poorer.