Freelance Rate Calculator
Calculate the minimum hourly or daily rate you need to charge as a freelancer to hit your income goals after tax and expenses.
Software, equipment, insurance, accounting, etc.
Your estimated combined income tax rate
Account for holidays, sick days, admin time (52 − 8 = 44)
Not all working hours are billable — typically 60–75%
How to Use
1. Enter your target take-home income — what you want in your pocket after tax 2. Add annual business expenses (software, insurance, equipment) 3. Estimate your effective tax rate — use our Tax Bracket Calculator if unsure 4. Enter realistic billable weeks (most freelancers bill 40–46 weeks) 5. Enter billable hours per week — typically 25–35 out of 40 working hoursThe rate shown is the minimum. Price higher for specialised skills, rush work, or high-value clients.
Formula
Hourly Rate = (Target Income ÷ (1 − Tax Rate) + Expenses) ÷ (Weeks × Hours)Frequently Asked Questions
Why is my freelance rate higher than my employee salary?
As a freelancer you pay both employee and employer taxes, fund your own super, have no paid leave, and carry business risk. Your rate needs to compensate for all of this.
How do I handle GST?
If you earn over $75,000/year in Australia, you must register for GST. Add 10% to your rate (or include GST in your quote separately). Use our Invoice & GST Calculator.
Should I charge more than the minimum?
Always. The minimum is your break-even. Add a premium of 20–50% based on your skills, urgency, and market rates. You can always negotiate down.
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