How to use this calculator
- Enter the requested income, cost, capacity or pricing assumptions.
- Review the units and confirm that annual and project values use the same period.
- Calculate and inspect each component of the result.
- Compare at least one conservative scenario before using the estimate.
Input guide
Annual revenue target
Enter the annual revenue target ($) used for this scenario. Keep its period and unit consistent with the other fields.
Billable days per year
Enter the billable days per year used for this scenario. Keep its period and unit consistent with the other fields.
Hours per billable day
Enter the hours per billable day used for this scenario. Keep its period and unit consistent with the other fields.
How this calculator works
Day rate = annual revenue target ÷ billable days.
Worked example
A $120,000 target across 180 billable days requires about $666.67 per day.
How to interpret the result
Treat the result as a planning baseline. A sustainable freelance decision should also account for unpaid administration, sales time, leave, late payments, market positioning and costs not represented by the selected fields.
Rounding policy
Currency and percentages
Money is rounded to cents and percentages to two decimals.
Assumptions and limitations
- All business costs and reserve percentages are user-entered.
- Billable capacity should exclude realistic non-billable time, leave and business development.
Frequently asked questions
Is this tax or accounting advice?
No. It is a transparent planning estimate based only on the values entered.
Should I compare multiple scenarios?
Yes. Test conservative and optimistic billable capacity, expenses and margin assumptions before setting a rate or price.
When should I recalculate with the Day Rate Calculator?
Recalculate whenever your capacity, expenses, target income, margin, reserve or project scope changes.
Why should I use realistic assumptions in the Day Rate?
Using total working time as billable time usually understates the rate or price required because administration, sales, leave and downtime are not invoiced.