🎯 Income Target
What you want in your pocket after everything
📅 Working Assumptions
As a freelancer, you fund your own holidays
Time finding new work, admin, etc.
Insurance, accountant, software, equipment
You should charge at least
£350
per day (exc. VAT) · £43.75/hour based on 8hr day
Billable Days
220
Annual Revenue Needed
£77,000
Daily Rate inc. VAT
£420

📊 How It Breaks Down

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Setting Your Freelance Rate

Most freelancers undercharge because they simply convert their salary to a day rate without accounting for all the hidden costs of self-employment: no paid holidays, no employer pension, no sick pay, business insurance, accountancy fees, and gaps between contracts.

A good rule of thumb: your day rate should be roughly 1.5–2× what you'd earn per day as an employee, to account for all these extras. This calculator does the exact maths for your situation.

Should I add VAT to my day rate?

If you're VAT-registered (required above £90k turnover), you must charge VAT on top of your rate. Most B2B clients can reclaim VAT, so it doesn't affect their cost. Quote your rate "plus VAT" or "exc. VAT" to keep things clear.

How many billable days is realistic?

There are 260 weekdays in a year. After holidays (25), sick/buffer days (5), and gaps between contracts (10-20), most freelancers bill 210-225 days. New freelancers should estimate conservatively at 200 days.