METHOD & GUIDANCE
How this calculation works
Keep every input on the same time basis—for example, one month or one financial year—and do not mix cash figures with accrual figures. Tool IQ recalculates every output immediately; nothing you enter is saved or sent to us.
How to use the result
Start with a realistic billable-day estimate, then test quiet periods, holidays and a contingency above the minimum sustainable rate.
Worked example
The example spreads a 58,000 annual revenue need across 161 billable days, producing a day rate of roughly 360.
Common mistakes
- Treating every working day as billable.
- Leaving software, insurance or professional fees out.
- Confusing the revenue target with personal take-home pay.
Frequently asked questions
Is the freelance rate calculator free?
Yes. It requires no account and stores no calculation inputs.
Can I use the answer for a formal filing?
No. It is a planning estimate, not accounting, tax, legal or investment advice. Confirm material decisions with a qualified professional.
Should I include VAT in revenue and cost figures?
Use a consistent basis throughout. Businesses that recover input tax commonly model net figures; customer-facing prices may need to be considered VAT-inclusive.
Continue the decision
- VAT Calculator — Add or remove VAT with a transparent breakdown.
- Profit Margin Calculator — See profit, margin and markup from one sale.
Popular small-business decision paths
- Set a price from cost and target margin
- Check profit and margin per sale
- Find the sales volume needed to break even
Method reviewed 5 August 2026. Figures are illustrative and calculated locally in your browser. Official sources are linked where a rule or obligation affects how the result should be used. Read the Tool IQ calculation standard for our checking process, limitations and corrections policy.