Freelance rate calculator

Work out a sustainable hourly or day rate from the income you need, the hours you can actually bill, and the costs of running your practice — then copy numbers into a clean quote.

What this calculator is for

Most freelancers underprice because they divide “desired salary” by 40 hours × 52 weeks. Real billable time is far lower after admin, sales, holidays, and downtime. A useful freelance rate calculator accounts for:

• Target take-home or revenue goal (before or after tax — you choose)
• Non-billable time (marketing, bookkeeping, proposals)
• Business costs (software, insurance, co-working, equipment)
• Buffer for slow months and unpaid invoices

Use the tool to get a floor rate you can defend, then decide whether to charge hourly, daily, or fixed-project. For the maths behind the number, see the freelance rate formula.

How to use the calculator (quick path)

1. Set your income target. Annual amount you need the business to produce before personal tax, or a monthly figure × 12.
2. Estimate billable hours. Many independents land around 50–70% of working hours as billable. Be honest.
3. Add overheads. Tools, phone, accounting, professional memberships, workspace.
4. Read hourly and day rates. Day rate is often hourly × 6–8 depending on how you define a day.
5. Stress-test. Drop billable hours 20% and see if the rate still works. If not, raise the floor or cut costs.

Hourly vs day vs project — which number to show clients

The calculator gives you a floor. Packaging is a separate decision:

• Hourly — good for unclear scope or retainers with variable load.
• Day rate — common for workshops, on-site work, and NZ agency-style engagements.
• Project / fixed fee — better when deliverables are clear; price from estimated hours × rate × risk buffer.

Compare approaches in hourly vs project pricing. For New Zealand context (NZD examples and GST set-aside reminders), see freelance day rates in NZ.

From rate to quote

Once you have a rate, turn it into a short written quote: scope, assumptions, timeline, payment terms, and what’s out of scope. Use the on-site quote builder and the walkthrough in freelance quote template.

What this tool does not do

• It does not file tax returns or calculate exact GST, PAYE, or company tax.
• It does not guarantee you’ll win work at that rate.
• It does not replace advice from an accountant or lawyer.

Related guides

If you’re still unsure what to ask for, start with what to charge as a freelancer and how to price freelance work. Avoid the traps covered in proposal pricing mistakes.

Tips for accurate inputs

• Use last year’s actual invoices and unpaid weeks if you have them.
• Separate “hope” utilisation from “evidence” utilisation.
• Include software you forgot you renew annually.
• Re-run the calculator when you change niche or add a big overhead.

Save or screenshot results for your own notes — the tool is client-side and doesn’t keep an account for you.