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How to Calculate Your Freelance Day Rate
The short answer: divide the revenue you need for the year by the number of days you can actually bill. To take home $60,000 with typical expenses and taxes, that's about $590 a day, based on 48 working weeks with about 65% of days billed.
The day rate formula
Billable days are the days a client actually pays for: your working weeks × 5, times the share of days you can bill. If you already know your hourly rate, the shortcut is hourly rate × 8. Not sure of your hourly rate? Start with how to set your freelance rate.
Freelance day rate calculator
How many days can you bill?
48 working weeks is 240 weekdays. But not all of them are billable. Pitching, admin, invoicing and gaps between projects take real time. Many freelancers bill 60–70% of their working days, or about 145–170 days a year. While you're building a client base, plan on fewer.
Half-day and weekly rates
- Half-day rates are often priced at a bit more than half your day rate, because a half day is hard to fill with other paid work.
- Weekly rates can include a small discount for a guaranteed block of work, since you don't need to sell those days.
- Set a minimum. Many freelancers bill no less than a half day, so short jobs don't eat a whole day.
When to use a day rate
Day rates suit on-site work, workshops, production days and short embedded engagements, where the client books your time rather than a deliverable. For defined deliverables, a fixed project price often pays better. Compare the two in hourly vs. project pricing.
Taxes are the biggest piece of the gap between a day rate and what you keep. See your yearly bill with the self-employment tax calculator, and the IRS overview of self-employment tax.
FAQ
How do I calculate my freelance day rate?
Add your take-home goal and yearly expenses, divide by one minus your tax rate, then divide by the number of days you can bill. Or multiply your hourly rate by 8.
What is a good day rate for a freelancer?
It depends on your field and goals. Work out your minimum with the formula, then compare it with what others in your field charge and use whichever is higher.
Should a half-day rate be half of my day rate?
Many freelancers charge a bit more than half, because the other half of the day is hard to fill with paid work.
Sources: IRS: self-employment tax. General information for planning, not tax, legal or financial advice.