Find what hourly rate to charge as a freelancer to hit your desired income, accounting for billable hours and costs.
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Enter the desired annual income, billable hours per week, weeks off and annual costs. See the minimum hourly rate.
The rate must cover the desired income plus costs (taxes, equipment, software), divided by the hours actually billable — not all your working hours.
Hourly rate ≈ 115 £/hr (1,150 hrs)Real-estate and business calculations. Standard formulas for commissions, price per m², margins and markups. Instant in-browser calculation, no account, no data sent. Last updated: 11 July 2026 · gov.uk: working for yourself.
⚖︎ Results are for informational purposes and do not constitute tax advice. For specific situations, consult a licensed accountant or the relevant tax authority.
The hourly rate covers the desired income plus costs, divided by the hours actually billable:
For £50,000/year, 25 billable hrs/wk (46 wks = 1,150 hrs) and £12,000 costs: (£62,000) ÷ 1,150 ≈ £54/hr.
Add the desired annual income and the costs, then divide by the number of billable hours per year. For example, (£50,000 + £12,000) ÷ 1,150 hours ≈ £54 per hour.
Multiply the billable hours per week by the number of weeks worked (52 minus time off). For example, 25 hours × 46 weeks = 1,150 billable hours per year.
Part of the time goes to admin, sales, learning, bookkeeping and breaks. Usually only 50–70% of working hours can actually be billed to a client.
Tax and National Insurance, software, equipment, subscriptions, insurance, workspace and a buffer for periods without projects. All are covered by the rate.
Add estimated Income Tax and National Insurance (plus VAT if you are registered) to the annual costs, so that the “desired” income is the take-home figure and the rate also covers what you owe HMRC.
A rate that covers costs, secures your target income and stays aligned with the market and the value you provide. Do not bill below the calculated floor, or you work at a loss.
In the UK, day rates are common — a £54/hr floor is roughly £400 for a 7.5-hour day. An hourly rate suits open-ended work or maintenance; a day or project rate suits clear deliverables. Even for projects, start from an hourly estimate so you don’t undervalue.
Through specialisation, demonstrable results, a strong portfolio and value-based positioning rather than time. As demand grows, raise the rate for new clients.