The annual take-home pay you want after tax, NI, and pension.
Hours per week you can bill to clients (typically 25-35).
Working weeks per year after holidays (52 minus holiday weeks).
Software, equipment, insurance, travel, and other business costs.
Percentage of gross profit contributed to your pension.
Reg. 07380272 · England & Wales · Est. 2010
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Hourly Rate
£41.74 /hr
Daily Rate (8hrs)
£333.92 /day
Effective Tax Rate
21.9%
Target Net
£40,000.00
Everything you need to know about setting your freelancer rate
How do I calculate my freelancer hourly rate?
Start with your desired annual take-home pay, add income tax, National Insurance, pension contributions, and business expenses to get your required turnover. Then divide that turnover by the number of billable hours you can realistically work in a year. This calculator automates the entire process, accounting for all UK tax obligations for the 2025/26 tax year.
How many billable hours should I plan for?
Most freelancers bill between 25 and 35 hours per week. The remaining time goes to administration, marketing, invoicing, professional development, and finding new clients. A common mistake is assuming you can bill for 40 hours per week — in reality, non-billable work typically takes 25-40% of your time. Being realistic about billable hours is key to setting a sustainable rate.
Should I charge the same rate for all clients?
Not necessarily. Many freelancers vary their rates based on project complexity, client budget, urgency, and the value they deliver. A rush job or specialist project might command a premium of 25-50% above your standard rate. Conversely, you might offer a lower rate for long-term retainer clients who provide stable, predictable income. Use this calculator to establish your minimum viable rate, then adjust upwards based on the value you provide.
How many weeks per year should I work?
Most freelancers plan for 44-48 working weeks per year. You should account for at least 4 weeks of holiday (including bank holidays), plus time for illness, gaps between projects, and quiet periods. Planning for 46 weeks is a sensible default — it gives you 6 weeks off while maintaining a realistic income target. Working significantly more risks burnout; significantly fewer weeks means your rates must be higher.
What business expenses should I include?
Common freelancer expenses include: software subscriptions and tools, computer equipment, professional insurance (PI and public liability), accountancy fees, coworking space or home office costs, travel to client sites, training and CPD, marketing and website hosting, phone and broadband, and professional memberships. These are legitimate business costs that reduce your taxable profit, so your rate needs to cover them on top of your desired income.
HMRC-Aligned: Based on HMRC rates for 2025/26. This calculator provides estimates only — for complex freelancer tax situations, consult a qualified accountant or tax adviser.
How to set a sustainable freelance rate in the UK
Setting the right freelance rate is one of the most important decisions you'll make as a self-employed professional. Unlike salaried employees who receive a fixed income with benefits, freelancers must set a rate that covers their desired take-home pay, all tax obligations, pension savings, business expenses, and the inevitable gaps between projects. Many new freelancers make the mistake of simply converting an employed salary to an hourly rate, forgetting that they now bear the full cost of employer NI equivalents, holiday pay, sick pay, equipment, and professional development — costs that were previously invisible.
This calculator works backwards from your target net income to determine the exact hourly and daily rate you need to charge. It accounts for income tax, Class 2 and Class 4 National Insurance, pension contributions, and business expenses using HMRC rates for the 2025/26 tax year. The key variables are your billable hours per week and working weeks per year — being honest about these figures is critical. Overestimating your billable time leads to undercharging and financial stress, while realistic planning ensures you build a sustainable freelance business with the income and lifestyle you want.
This calculator uses official rates and thresholds from:
Last verified: February 2026 · Tax year 2025/26. Results are indicative — consult a qualified accountant for personalised advice.
Reviewed by M. Samiuddin Quadri, ACCA — Chartered Certified Accountant at Gladstone & Co. · Updated for the 2025/26 tax year.
Disclaimer: This calculator provides estimates based on current HMRC rates and thresholds for the 2025/26 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified accountant or tax adviser before making financial decisions. Read our terms