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What Should You Charge?

Freelance Rate Calculator — What Should You Actually Charge?

Most rate calculators just divide your target salary by work hours. This one factors in taxes, business costs, time off, and realistic billable hours — so the number you get is what you actually need to charge, not a rough guess.

💼 Your Numbers

Note: Billable hours per day should be less than your total working hours — admin, proposals, marketing, and learning time isn't billable.

💰 What You Need to Charge

Enter values and click Calculate
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Disclaimer: This calculator is for educational and planning purposes only and does not constitute financial or tax advice. Actual tax treatment varies by entity type, jurisdiction, and deductions. Consult a chartered accountant for accurate tax planning as a freelancer or business owner.

Why the Real Number Is Higher Than You Think

Employees get paid for every working hour. Freelancers only get paid for billable hours — the rest (proposals, invoicing, admin, marketing, learning) is real, unpaid work. On top of that, freelancers cover their own taxes and business costs out of revenue, not a separate paycheck. This calculator accounts for all three gaps at once.

The Formula

Required Revenue = Business Costs + (Target Income ÷ (1 − Tax Rate))

Hourly Rate = Required Revenue ÷ (Working Days × Billable Hours/Day)

Business costs are deducted from revenue before tax applies, and your take-home target must come out of what's left after tax — that's why costs are added on top rather than simply included in the pre-tax target.

Worked Example

Target take-home of ₹12,00,000/year, 20% effective tax, ₹1,50,000 annual business costs, 260 working days minus 25 days off, 6 billable hours/day.

Frequently Asked Questions

Employees get paid for every working hour; freelancers only get paid for billable hours, which are always fewer than total working hours once you subtract time off, admin work, and non-billable client work. On top of that, freelancers cover their own taxes and business costs out of revenue, not a separate paycheck. All of this pushes the real required rate well above a simple salary-to-hourly conversion.
Business costs (software, tools, insurance) are deducted from revenue before tax, then tax applies to what's left, and your target take-home income must come out of that after-tax amount. This calculator grosses up your revenue target correctly for that order of operations.
Only time you can directly invoice a client for. Time spent on proposals, invoicing, marketing, learning, and admin work is real work but is not billable — which is exactly why your billable hours per day should usually be lower than your total working hours per day.
Treat this as your floor, not your final price. Market demand, your experience level, and what comparable freelancers charge on platforms and in your niche should also inform your final rate — this calculator tells you the minimum you need, not the maximum you could get.