Billable Rate Calculator
Turn the income you want, your costs and the hours you can really bill into the hourly and day rate you should charge.
Hourly rate at different billable time and margins
| Billable time | 0% margin | 10% margin | 20% margin | 30% margin |
|---|---|---|---|---|
| 50% | £102 | £113 | £127 | £146 |
| 60% | £85 | £94 | £106 | £121 |
| 70% | £73 | £81 | £91 | £104 |
| 80% | £64 | £71 | £80 | £91 |
| 90% | £57 | £63 | £71 | £81 |
Rate = (income ÷ (1 − tax) + costs) ÷ (1 − margin) ÷ billable hours. Billable hours = working weeks × hours a week × billable time.
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All free toolsFrequently asked questions
How do I work out my freelance hourly rate?+
Start with the income you want, add your business costs and an amount for tax, then add a profit margin. Divide that by the hours you can actually bill in a year — working weeks × hours a week × the share of time that's billable.
What is billable time (utilisation)?+
The share of your working hours you can charge a client for. Admin, sales, invoicing and learning are not billable, so most freelancers and agencies bill 60–75% of their time. Using 100% leads to rates that are too low.
How do I get a day rate?+
Multiply your hourly rate by the hours in a billable day — often 7 to 8. The calculator does this for you and you can change the hours.
Why add a profit margin?+
A margin covers slow months, late payers, unexpected costs and growth. Without it, any unbilled week means you miss your income target.
How do I make sure every billable hour gets invoiced?+
Track time against each client and project, then invoice from those hours. TeamTrackin does both, with recurring invoices, reminders and a client portal.
Bill every hour you work
TeamTrackin tracks time by client and project and turns it into invoices, with reminders and a client portal.
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