Free tool

Freelance & Consultant Rate Calculator

Whether you're a consultant or freelancer, find out what to charge per hour or per day to hit your target income.

1

Set your target

Enter the annual income you want to take home.

2

Add your costs

Factor in taxes, expenses, and time off.

3

Get your rate

See the hourly and day rate you need to charge.



Hourly rate
$0
per hour
Day rate
$0
per day
Monthly rate
$0
per month
Weekly rate
$0
per week
Take-home target $0
+ Taxes $0
+ Business expenses $0
You need to earn $0
Billable weeks 0
Billable hours / year 0

How this calculator works

Most freelancers set their rate by picking a number that sounds about right and hoping it covers things. This does it the other way around — it starts from what you need to take home and works backward to the rate that gets you there.

Here's the math it runs:

Use whatever currency you like — the math doesn't care whether those are dollars, pounds, or euros.

A worked example

Say you want to take home $100,000, you set aside 30% for taxes, you have $5,000 in annual expenses, you take 4 weeks off, and you bill 6 hours a day.

  • You need to earn ($100,000 + $5,000) ÷ 0.70 = $150,000 before tax.
  • You'll bill 48 weeks × 6 hours × 5 days = 1,440 hours a year.
  • That's $150,000 ÷ 1,440 = about $104 an hour, or $625 a day.

If $104 an hour sounds higher than you expected, that's the point — it's what it takes to net $100k once taxes, time off, and unbillable hours are in the picture.

What should you charge as a consultant?

There's no single right number — it depends on your field, your experience, and your market. What this gives you is a floor: the rate below which you're working for less than you think. A lot of consultants quote a fee that looks fine next to a salary and only later realize it didn't leave room for taxes or the weeks they weren't billing. Start from the number you need, then adjust up for your market — not the other way around.

Hourly rate vs. day rate

The calculator gives you both, and which one you quote is mostly about the work. Hourly suits open-ended or support work where the scope keeps moving. A day rate suits focused engagements where you're blocking out whole days — and it spares you from tracking every fifteen minutes. The underlying rate is the same; you're just packaging it differently.

Why your rate isn't your old salary divided by 2,080

A full-time year runs about 2,080 hours (40 × 52). It's tempting to take a $100,000 salary, divide by 2,080, and call $48 an hour your freelance rate. Don't. That number assumes every hour is paid, ignores self-employment tax, and skips the expenses an employer used to cover. Going from a salary to a freelance rate is its own calculation — the salary calculator handles that direction.

Frequently asked questions

How much should I charge as a freelance consultant?

Start from what you need to take home, then add taxes, expenses, and unbilled time — which is what this calculator does. The result is your floor. From there, adjust up based on your experience and what your market pays. There's no universal figure, but quoting a rate without running this math is how people end up underpricing.

What's a good consulting hourly rate?

A good rate covers your income target after taxes, expenses, and the weeks you're not billing — and that your market will actually pay. The calculator gives you the first half (your minimum); your field and experience set the rest.

How do I convert a salary into a freelance rate?

Don't just divide by 2,080. A freelance rate has to absorb self-employment tax, business expenses, and unpaid time off that a salary hid. Use the salary calculator for the salary-to-rate direction, or enter your target take-home here and let it gross everything up.

How many billable hours should I assume?

Fewer than you'd expect. Even working full days, admin, sales, and email eat into billable time — 5 to 6 billable hours a day is realistic for a lot of freelancers, not 8. The calculator lets you set this, and it's worth being honest about, because a high number quietly pushes your rate down.

Should I charge by the hour or by the day?

Hourly fits open-ended or support work where scope shifts. A day rate fits focused engagements and saves you from tracking every fifteen minutes. The calculator shows both from the same underlying rate.

Does this work outside the US?

Yes. The math is currency-agnostic — enter your numbers in dollars, pounds, euros, or anything else, and the rate comes back in the same units. The default tax rate is only a starting point; set it to whatever applies where you are.

Know your rate. Now manage your cash.

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