Your minimum rate
A guide. Your rate should also reflect the value you deliver and what your market will bear, and remember billable days are far fewer than working days once holiday, admin and sales are removed.
Win better clientsFrequently asked questions
How do I work out my day rate?
Add your desired net income to your annual business costs, then gross up for tax if needed, then divide by the number of days you plan to bill. The key insight most freelancers miss is that billable days are far fewer than working days once you account for holidays, bank holidays, sick days, admin, sales and marketing time. A realistic figure for a full-time freelancer is typically 200 to 220 billable days a year, not 260.
How many billable days are there in a year?
Start with 260 working days (52 weeks × 5 days). Subtract at least 28 days for holiday entitlement, 8 bank holidays in England, and a realistic allowance for sick days and admin. Most freelancers also spend unpaid time on business development and professional development. A figure of 200 to 220 billable days is a reasonable baseline, and lower in your first year when you are still building a client base.
What should a freelancer charge?
Your day rate should cover your income target and costs, but it also needs to reflect the value you deliver and what your market will pay. Research what peers in your field charge, and consider whether your expertise, niche or track record justifies a premium. Many freelancers undercharge, particularly early in their career. A higher rate with fewer clients is often more profitable and sustainable than a low rate with a full diary.
Win better clients and charge what you are worth
A professional website and stronger online presence helps freelancers attract better-quality enquiries and justify higher rates. Tell me about what you do.