Freelance Rate Calculator
The classic freelance mistake is dividing a target salary by 2,080 hours and quoting that. It bankrupts people slowly, because it assumes every working hour is billable, that you never take leave, that you have no expenses, and that nobody is deducting tax.
Reality: most freelancers bill 50–65% of their time. The rest is pitching, invoicing, revisions, admin and the work you do to win the next project. That unbillable time still has to be paid for — by the billable hours. This calculator starts from what you actually want to keep, adds back tax and expenses, then divides by the hours you can genuinely sell. The number is usually higher than people expect. That is the point.
You need to invoice about 2,025,000 a year to take home 1,500,000, across 1104 billable hours.
How it works
- 01Your target take-home is grossed up for tax, then business expenses are added, giving the revenue you must actually invoice.
- 02Billable hours are computed from working weeks (52 minus your leave) × hours per week × your billable share.
- 03Revenue needed ÷ billable hours = your true hourly rate. The day rate assumes eight billable hours.
Frequently asked
My rate looks too high to be competitive. Is it wrong?+
Probably not — it is what the maths requires. A ₹15 lakh take-home target is not a ₹720/hour job; it is closer to ₹1,800/hour once tax, expenses and unbillable time are honest. If the market will not pay it, the fix is a narrower specialisation or fixed-price work, not undercharging.
Should I charge hourly or per project?+
Per project, wherever you can. Hourly caps your income at hours available and quietly punishes you for getting faster. Use this hourly figure as your internal floor for pricing a project, not as the number on the invoice.
What billable percentage is realistic?+
Starting out, 40–50% while you are building a pipeline. Established with repeat clients, 60–70%. Above 75% is rare and usually means you are neglecting business development — which shows up as a gap three months later.
What should I count as a business expense?+
Software, hardware, internet, coworking or a home-office share, professional insurance, accounting fees, courses, and your own health insurance — the thing employment used to cover. Freelancers routinely forget that last one.
How do I raise rates with existing clients?+
Give notice — 30 to 60 days — apply it to new work rather than work in progress, and state it as a fact rather than a request. Losing your lowest-paying client to a rate rise is usually a net gain in both money and time.