Day Rate Calculator
Calculate a freelance day rate and hourly equivalent from annual income, expenses, and billable days.
This selection sets the currency unit only; amounts are not converted using exchange rates.
USD
USD
USD
days/year
days/year
days/year
days/year
hrs/day
%
days
Required day rate
Hourly equivalent
Required annual revenue
Average monthly revenue
Available working days
Billable days per year
Minimum utilization without profit reserve
Minimum price for the project scope
Day rate at different utilization levels
Derive a day rate from real capacity
The calculator adds desired compensation, business costs, and a profit or reserve target. It divides that total by billable days. Both the billable share and hours per day are visible inputs.
Available does not mean billable
Subtract vacation, sick leave, holidays, and other time off from potential working days. Represent administration, sales, and training through the billable share. This keeps absence separate from non-billable work.
Limits of the calculation
The hourly equivalent is for comparison, while the optional project price is the day rate multiplied by project scope. Personal taxes, social contributions, sales tax, market pricing, and payment defaults are not added automatically.
Frequently Asked Questions
How many days per year can I realistically bill?
Start with available working days and then enter the share that can actually be billed. Vacation, illness, sales work, and administration reduce that share.
Which business costs belong in the day rate?
Include annual costs the business must support, such as software, insurance, workspace, professional advice, and training.
How do I account for vacation and sick leave?
Enter vacation and a realistic sick-leave allowance separately. Put holidays and other time off in the additional field so the remaining capacity stays visible.
Is sales tax or VAT included in the day rate?
The calculator uses the amounts you enter and applies no tax rules. Plan consistently with either tax-exclusive or tax-inclusive amounts and do not mix the two bases.
How is the hourly equivalent calculated?
The required day rate is divided by the hours per working day you enter. This comparison value does not change planned annual capacity.
Why is a day rate not comparable to an employee wage?
A day rate must fund compensation, business costs, reserves, and non-billable work. Benefits and personal taxes are not evaluated automatically.