Daily rate from target annual income. The Day Rate Calculator takes target annual income, annual business expenses, billable days per year and returns day rate plus equivalent hourly rate (8-hour day), weekly rate (5 days). Results update as you type, and the formula is shown under the result so you can repeat it in your own spreadsheet.
For freelancers and agencies the scarce resource is billable time. Pricing has to cover unpaid hours, tools, taxes and time off, not just the hours a client sees on an invoice. Use the worked example below to check the maths against your own figures.
How the Day Rate Calculator works
Two hundred and twenty billable days a year already allows for holidays, sickness and unpaid admin time; if you spend more time selling than that, lower the days and the rate rises accordingly.
Worked example
With the example values (target annual income of $90,000, annual business expenses of $6,000, billable days per year of 220), the day rate is $436.36; equivalent hourly rate (8-hour day) $54.55, weekly rate (5 days) $2,181.82. Change any figure above and the result updates immediately; use Copy results to paste the summary into a note or email.
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Frequently Asked Questions
How is day rate calculated?
day rate = (target income + expenses) ÷ billable days.
Which figures do I need?
Target annual income, annual business expenses, billable days per year. Take them from the same period and the same set of accounts or reports so the ratio is consistent, and check the example values as a guide to the units expected.
How do I choose the target income or margin?
Start from what you need to earn after tax and expenses, add a margin for unpaid time (sales, admin, holidays, slow months) and check the resulting rate against what your market pays.
