Day Rate Calculator
Calculate your ideal daily freelance or consulting rate from your annual income target. Factor in taxes, overhead, non-billable time, and profit margin to set a sustainable day rate.
Formula & Reference
| Variable | Formula | Units |
|---|---|---|
| Day Rate Calculator | Day Rate = Annual Target / Billable Days / (1−Tax Rate) | $/day |
Step-by-Step Examples
Net $100k, 200 billable days, $10k overhead, 30% tax.
- Gross needed: ($100k+$10k)/(0.70) = $157,143
- Day rate: $157,143/200 = $786/day
- Hourly: ~$98/hr
Net $150k, 180 billable days, $20k overhead, 35% tax.
- Gross needed: ($150k+$20k)/0.65 = $261,538
- Day rate: $261,538/180 = $1,453/day
Net $60k, 120 billable days, $5k overhead, 28% tax.
- Gross needed: $65k/0.72 = $90,278
- Day rate: $90,278/120 = $752/day
Real-World Applications
Common Mistakes to Avoid
After weekends, holidays, sick days, admin, sales, and downtime, most freelancers bill 150–220 days. Overestimating is the most common day-rate mistake.
Software, equipment, insurance, marketing, and accounting costs add up. Include all business costs or your rate won't cover them.
Sales calls, invoicing, project management, and professional development are unpaid. Factor 20–30% non-billable time into your billable days estimate.