How to Calculate a Freelance Day Rate

How to Calculate a Freelance Day Rate

You’ve decided to dip your toes into the freelance world and secured your first enquiry, and then you are asked

“What are your rates?”

Perhaps a mini panic takes over.

  • What do you quote?
  • Will you be too much or too little?
  • Will they think you’re too cheap or too expensive?

Don’t worry; we’ve got you covered.

As a new freelancer, remember that it’s a partnership with your clients. Release yourself from worrying about ‘what they think’ and embrace the promise of the brilliant work you can do together.

Just having that first conversation is a win!

It’s important to highlight here that by day/hour rates are just one pricing option available, but we wanted to focus on this, and make it super easy for you, because we know moving from a fixed salary to an hourly or day rate can feel like a minefield.

How to Calculate your Day Rate.

When you are self-employed, you will not receive benefits such as holiday pay, sick pay, or pension contributions, so these need to be factored in.

Step One

Consider Lost Benefits:

Add at least a 30% increase to any equivalent salary to cover lost benefits.

Step Two

Determine Available Working Days:

On average there are 250 working days in a year

Deduct holiday time (eg six weeks) to get approximately 220 working days

(you may want to deduct extra days to cover admin or training – the choice is yours)

Step Three

Calculate Your Rate:

Basic salary + 30% = annual freelance salary / no of working days = Daily rate

£60,000 + 30% = £78,000 / 220 = £355 per day

This rough guide will help give you confidence in the rates you are quoting.

As you work with different clients, you will begin to discover various types of projects, the amount of time you want to work and how rates reflect the work completed.

Ready to Move Beyond Hourly/Day Rates?

Take it a step further by exploring our FREE GUIDE on Value-Based Pricing.

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