Freelance hourly rate calculator
What you want to keep each year after tax and NI.
Software, equipment, insurance, phone, accountant, travel.
Admin, emails, quotes and finding work are unpaid. 60% to 75% is typical.
For a sole trader with no other income, 2026/27 rates for England, Wales and Northern Ireland. 8 bank holidays are taken off for a five-day week. Does not include pension saving.
Charge at least
£35.05
an hour, or £245 a day
- Take-home you want
- £30,000
- Income tax
- +£4,711
- Class 4 National Insurance
- +£1,413
- Business costs
- +£2,000
- You need to invoice
- £38,125
- Paid days a year
- 155
- Paid hours a year
- 1,088
This is your floor, not your price. Check what others charge in your field and price for the value you deliver.
The hours you can actually charge for
A full-time year has roughly 1,700 to 1,800 working hours once holidays and bank holidays are taken off. But most freelancers can only bill for 60% to 75% of them. The rest goes on emails, quotes, invoicing, learning and finding the next client.
That is why a freelancer who wants the take-home pay of a £30,000 job usually needs to charge well over £25 an hour, not the £15 or so that salary works out at.
Do not forget
- Pension: nobody pays into one for you. Consider adding 5% to 10% to your target. A SIPP gets tax relief.
- Tax bills: set aside money from every invoice. Read about payments on account before your second year.
- Quiet months: keep a few months of costs in an emergency fund.
Freelancing on the side of a job? The side hustle tax calculator takes your salary into account.
Questions
Common questions
How do I work out my freelance hourly rate?
Start with what you want to take home, add income tax, National Insurance and business costs to get what you must invoice, then divide by the hours you can actually charge for in a year. Holidays, sick days and admin all reduce those hours.
Why is my freelance rate so much higher than an employee's hourly pay?
Employees get paid holiday, sick pay, an employer pension contribution and equipment. Freelancers pay for all of that themselves, and spend part of each week on unpaid work like finding clients.
Should I charge by the hour or by the project?
Hourly is simpler when the work is open-ended. Project or day rates reward you for working efficiently. Many freelancers use this hourly figure as a floor, then quote by the project.
When do I need to register for VAT?
When your VAT-taxable turnover goes over £90,000 in any rolling 12 months. You then add 20% VAT to most invoices.
Sources
This tool gives an estimate for general information. It is not tax advice. Check your own position on GOV.UK or with an accountant.