Freelance Hourly Rate

Calculate your minimum and target freelance hourly rate based on personal expenses, business overheads, billable hours, and tax demands.

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Desired Annual Personal Take-Home

Annual Business Overhead Costs

Average Tax/National Insurance Rate (%)

Desired Weeks Off / Holiday (yearly)

Billable Hours per Week (typically 20-30)

Required Hourly Rate

£0.00

Gross Revenue Target

£0.00

Annual Tax Burden

£0.00

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Pricing Yourself as a Freelancer

Calculating your ideal freelance rate involves accounting for factors that are typically covered automatically as an employee. As a business owner, you must price in your taxes, equipment, holiday time, and unbillable working hours.

Important Factors to Remember

Taxes & National Insurance: You are responsible for paying income tax and local social security. Always calculate your rate based on gross revenue required rather than net take-home salary.
Business Overhead: Equipment upgrades, software subscriptions, insurance, and professional fees must be factored directly into your hourly charge.
Billable vs. Unbillable Hours: Freelancers rarely spend all 40 hours per week working on direct client tasks. Administrative overhead, prospecting, invoicing, and marketing occupy around 25-35% of your workweek.

Frequently Asked Questions

Should I use value-based pricing instead of hourly rate?+

For specific projects (like website builds or branding design), flat value-based pricing is highly recommended because it rewards you for speed and experience. However, knowing your baseline hourly cost ensures your flat rates are profitable.

What is unbillable time?+

Unbillable time refers to work hours spent on tasks that clients don't pay you for directly—like sending emails, writing contracts, chasing invoices, and finding new clients. Most freelancers spend 5–10 hours per week on this overhead.

Should I charge more than my employee equivalent rate?+

Yes! Freelancers should typically charge 50% to 100% more per hour than their corporate employee equivalents. This markup offsets the lack of paid sick leave, corporate health plans, pension match schemes, and guaranteed monthly payouts.

Freelance Hourly Rate

✨ What would you like to do next?

Pricing Yourself as a Freelancer

Important Factors to Remember

Frequently Asked Questions

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