Incolator
Incolator/Salary & income/Freelance Day Rate

Salary & income · 2 min

Freelance Day Rate

Freelancers price forwards — a number that sounds fair — and go broke backwards. This instrument works the other way: start from the net income you actually want, add tax, overheads and a buffer, divide by the days clients will genuinely buy, and the rate falls out. It is nearly always higher than the fair-sounding number.

Currency-agnostic · symbol only Rules version 1.0 Reviewed July 2026

Your details

Σ/ yr

After tax, after the business — what lands in your personal account across the year.

%

Your effective all-in rate as a freelancer, wherever you're registered. Include everything a euro of revenue loses on the way to you.

Σ/ yr

Software, hardware, insurance, accounting, co-working, the conference. What running you costs.

days / yr

The calendar minus weekends, holidays and honest leave.

%

Sales, admin, proposals, the empty weeks between projects. Seasoned solo operators bill 50–65% of available days; almost nobody bills 80.

%

For the client who pays late and the quarter that doesn't come. A business without a buffer is a job without security.

Everything is calculated in your browser as you type. Nothing you enter is sent or stored, and no account is needed.

Your result

Priced like a business.

$1,985 / day

the rate your target income actually requires

Working backwards from the income

Revenue the year must produce
Billable days at your utilisation
The day rate
The hourly equivalent (8 h day)
What a fair-sounding rate would leave you

Three honesty levels about utilisation

If clients buyBillable daysRequired day rate

What moves this result

Worth checking

Utilisation is where freelance pricing dies. Every unsold day raises the required rate on the sold ones — and the first year's utilisation is always worse than the plan.

The tax line must include everything: income tax, social charges, the local business levy nobody mentions. A five-point miss here is a five-point pay cut you gave yourself.

This is your floor, not your price. If the market pays more for your work, charge the market; the instrument only tells you the number below which you are subsidising your clients.

Common questions

How do I calculate my freelance day rate from a salary?
Don't divide the salary by 260 — that's how freelancers underprice. Work backwards: the net income you want, plus overheads, grossed up for tax and a buffer, divided by the days clients will actually pay for. At 60% utilisation the correct rate is roughly double the naive salary-divided figure.
What utilisation rate is realistic for freelancers?
Established solo practitioners typically bill 50–65% of available working days once sales, proposals, admin and gaps are counted honestly. New freelancers often run below 50% in year one. Planning at 80%+ is the most common pricing mistake in the trade.
What should my rate include beyond my salary?
Everything an employer silently paid: tax and social charges at freelance rates, software and hardware, insurance, accounting, workspace, unpaid leave, and a profit buffer for late payers and thin quarters. That stack is why a credible day rate looks high — it's carrying a whole employer on its back.
How this is calculated

Everything below is calculated from your inputs. Nothing is fetched, nothing is looked up.

revenue = (net_target + overheads) / (1 − tax) × (1 + buffer) billable = available_days × utilisation day_rate = revenue / billable

The gauge reads your utilisation assumption against the house planning line of 60% — the level a well-run solo practice sustains. Assume more and the instrument warns you: the rate looks pleasingly low because the plan is quietly optimistic.

Limitations. Tax as a flat effective rate is a simplification — progressive systems and deductible overheads interact; a real accountant sharpens the figure. Team practices with subcontractors need margin math this instrument doesn't do.