Day Rate Estimator
$
$
Software, insurance, equipment, etc. Default: 220 (365 - weekends - holidays - vacation)
Admin, marketing, proposals
Combined income + self-employment tax
$0
Day Rate (incl. profit margin)
Revenue Needed$0
Total Days Needed0 days
Base Day Rate$0
Effective Hourly Rate (8hr day)$0.00
Annual Profit$0
Get Your Results Emailed
Enter your email and we'll send you a summary of your calculator calculation. No spam, unsubscribe anytime.
How to Use
This calculator works backward from your target income to find the day rate you need to charge. Here is what each input means:
- Desired Annual Salary — how much you want to take home after all expenses and taxes.
- Business Overhead — your total annual business costs including software, insurance, and office space.
- Billable Days Per Year — the number of days you can actually charge clients. Start with 260 weekdays, subtract vacation, holidays, and sick days.
- Non-Billable Time — the percentage of your working time spent on admin, marketing, and proposals. 20% is typical.
- Tax Rate — your combined tax burden. For US freelancers, 25-35% is typical.
- Profit Margin — a buffer for growth, savings, and unexpected costs. 10-20% is healthy.
Day Rate Formula
Revenue Needed = (Salary + Overhead) / (1 - Tax Rate)
Total Billable Days = Billable Days × (1 - Non-Billable%)
Base Day Rate = Revenue Needed / Total Billable Days
Day Rate with Profit = Base Day Rate × (1 + Profit Margin)
Hourly Rate = Day Rate with Profit / 8
Total Billable Days = Billable Days × (1 - Non-Billable%)
Base Day Rate = Revenue Needed / Total Billable Days
Day Rate with Profit = Base Day Rate × (1 + Profit Margin)
Hourly Rate = Day Rate with Profit / 8
Frequently Asked Questions
A typical full-time freelancer bills 180-220 days per year. The calculation starts at 260 weekdays (52 weeks x 5 days), subtracts 20-30 days for vacation and holidays, and accounts for 15-25% non-billable time.
Include all business expenses: software subscriptions, hardware depreciation, insurance, office space or coworking, internet and phone, marketing costs, professional development, and legal/accounting fees.
Taxes significantly impact your required day rate. Revenue needed = (Salary + Overhead) / (1 - Tax Rate). At a 30% tax rate, you need to earn roughly 43% more than your target income just to cover taxes.
Day rates are preferred for creative and consulting work where the output matters more than the hours. Hourly rates work better for ongoing maintenance and support. Many freelancers use both.