General information only. This is a planning framework, not tax, legal, accounting, or pricing advice.
What utilisation means
Utilisation is the share of available working time that can be billed to clients. Sales, proposals, bookkeeping, training, holidays, and gaps between projects still take time but usually cannot be invoiced.
Why 60% is often used
A 60% assumption means three billable days in a five-day working week on average. It is a starting scenario, not an industry rule. Established specialists may bill more; new freelancers or project-based work may bill less.
Turning it into a rate
Add the annual pay you want, business costs, taxes, benefits, and a contingency. Divide that total by realistic billable days. Test lower utilisation too, because a small change can materially raise the required rate.
Try your numbers
The Freelance Day Rate calculator provides scenarios based on the inputs you choose.