๐ผ Freelance Rate Calculator
This is only an estimate. Actual taxes and social insurance costs vary by individual circumstances.
Enter your desired take-home income, annual business expenses, the percentage you want to set aside for taxes and social insurance, and your annual working days and hours per day, to reverse-engineer the day rate and hourly rate you need to charge. Answers the question: "what do I need to charge to actually take home what I want?"
How to use
- Enter the take-home annual income you want to end up with.
- Enter your annual business expenses (equipment, internet, etc.).
- Enter the percentage of income you want to set aside for taxes and social insurance.
- Enter your annual working days and hours worked per day โ the required day rate and hourly rate are calculated automatically.
FAQ
What's the logic behind this calculation?
It computes "(desired income + expenses) รท (1 โ reserve percentage)" to work out the gross annual revenue you need before taxes, social insurance, and expenses are taken out, then divides that by your working days and hours to get the day rate and hourly rate.
What reserve percentage should I use?
Many freelancers set aside roughly 20-35% of income to cover income tax, local tax, health insurance, and pension contributions, but this varies a lot based on income level and deductions. Check with an accountant or your own tax filing for an accurate figure.
How should I decide on working days?
Start from the total days in a year and subtract weekends, holidays, paid time off, and days spent on sales or admin work rather than billable work โ the goal is an honest estimate of days that actually generate income.