Pricing & Rate Calculator
Calculate your ideal rate based on your income goals, business expenses, and billable hours. Never undersell yourself again.
Your Income & Work Details
How to Calculate Your Freelance Hourly Rate
Setting a freelance rate can feel like guesswork — but it doesn't have to be. The most reliable method is to start with your financial needs and work backward. This "bottom-up" approach ensures you charge enough to actually sustain your business and lifestyle, rather than picking an arbitrary number that sounds reasonable.
The formula is straightforward: take your monthly income goal, add your monthly expenses, then divide that total by your actual billable hours. But the key insight is that your billable hours are almost always less than your working hours. When you account for admin, business development, unpaid revisions, sick days, and holidays, most small business owners are only billing for 60–75% of their working time.
Why You Should Add a Buffer
The "suggested project rate" in this calculator adds a 20% buffer on top of your minimum hourly rate. There are two reasons for this. First, projects almost always take longer than expected — scope creep is the number one killer of freelance profit margins. Second, a slightly higher rate gives you room to negotiate without dropping below your minimum. If a client asks for a discount, you can offer 10% off and still be profitable.
Value-Based Pricing vs. Hourly Rates
Many experienced small business owners eventually move away from hourly billing toward value-based pricing — charging based on the outcome or value you deliver rather than the time it takes. If a website redesign generates an extra £50,000 in sales for your client, charging £800 because it only took 8 hours severely undervalues your work. Use this calculator to establish your floor rate, then consider whether the value you deliver justifies a higher number.
