FREELANCE RATE CALCULATION WORKSHEET ===================================== SoloStack | solostack.madethis.app Free to use — no signup required ===================================== This worksheet walks you through the 4-step formula to calculate your minimum viable hourly rate and day rate. Work through each section in order. ────────────────────────────────────────────────────────────── STEP 1: ANNUAL INCOME GOAL ────────────────────────────────────────────────────────────── What do you need to take home after taxes and business expenses? Be specific — use real numbers from your budget. Target annual take-home income: $___________ (e.g. $75,000) Note: This is what lands in your personal account, not gross revenue. If you're unsure, start with your current salary or desired salary. ────────────────────────────────────────────────────────────── STEP 2: BILLABLE HOURS PER YEAR ────────────────────────────────────────────────────────────── How many hours per year will you actually bill to clients? (Not worked — billed. Admin, sales, and unbillable time don't count.) Weeks worked per year: _____ (e.g. 48 — allows 4 wks off) Billable hours per week: _____ (e.g. 25 out of 40 hrs worked) ──────────────────────────────────────────── Total billable hours per year: ___________ (weeks × hours = e.g. 48 × 25 = 1,200 hrs) Realistic billable hour ranges by freelancer type: - Part-time freelancer: 500–800 hrs/yr - Full-time (early stage): 800–1,000 hrs/yr - Full-time (established): 1,000–1,400 hrs/yr - Agency-level efficiency: 1,400–1,600 hrs/yr ────────────────────────────────────────────────────────────── STEP 3: BASELINE RATE (before overhead) ────────────────────────────────────────────────────────────── Baseline hourly rate = Annual income goal ÷ Billable hours $___________ ÷ ___________ hrs = $___________/hr ← Baseline rate (Step 1) (Step 2) Example: $80,000 ÷ 1,000 hrs = $80.00/hr baseline ────────────────────────────────────────────────────────────── STEP 4: ADD OVERHEAD (the costs of running your business) ────────────────────────────────────────────────────────────── List your annual business costs below: Self-employment / income taxes: $___________ (est. 25–30% of income) Health insurance: $___________ (e.g. $200–600/mo = $2,400–7,200/yr) Software & subscriptions: $___________ (e.g. Adobe, Figma, Notion, Slack) Professional development: $___________ (courses, books, conferences) Equipment / hardware: $___________ (amortized over useful life) Accounting / legal: $___________ (bookkeeper, CPA, contract review) Marketing & portfolio: $___________ (website hosting, ads) Office / co-working space: $___________ Other business expenses: $___________ ──────────────────────────────────────────── TOTAL ANNUAL OVERHEAD: $___________ Overhead % = Total overhead ÷ Annual income goal × 100 $___________ ÷ $___________ × 100 = _______% Typical overhead ranges: - Lean setup (home office, minimal tools): 15–25% - Average freelancer setup: 25–35% - Full-time with health insurance + taxes: 35–45% ────────────────────────────────────────────────────────────── STEP 5: CALCULATE YOUR FLOOR RATE (with overhead) ────────────────────────────────────────────────────────────── Floor rate = Baseline rate × (1 + overhead %) $___________/hr × (1 + _______) = $___________/hr ← Floor rate (Baseline) (Overhead) Example with 30% overhead: $80.00/hr × 1.30 = $104.00/hr floor rate ────────────────────────────────────────────────────────────── STEP 6: ADD PROFIT MARGIN ────────────────────────────────────────────────────────────── Profit margin lets you reinvest in your business, build savings, and weather slow months. Recommended: 10–20%. Floor rate × (1 + profit margin %) = Final minimum rate $___________/hr × (1 + _______) = $___________/hr ← Final minimum rate (Floor rate) (Profit %) Example with 15% profit margin: $104.00/hr × 1.15 = $119.60/hr → round up to $120/hr ────────────────────────────────────────────────────────────── STEP 7: CALCULATE YOUR DAY RATE ────────────────────────────────────────────────────────────── Day rate = Hourly rate × 7.5 hours (Standard billable day is 7–8 hours; 7.5 is common) $___________/hr × 7.5 = $___________/day ← Day rate Example: $120/hr × 7.5 = $900/day ────────────────────────────────────────────────────────────── SUMMARY: YOUR CALCULATED RATES ────────────────────────────────────────────────────────────── Annual income goal: $___________ Billable hours per year: ___________ Overhead percentage: ___________% Profit margin: ___________% ┌─────────────────────────────────────────┐ │ MINIMUM HOURLY RATE: $___________ │ │ MINIMUM DAY RATE: $___________ │ └─────────────────────────────────────────┘ Remember: This is your FLOOR rate — the minimum you need to charge to hit your goals. Your actual rate should be at or above this. Check the market to see what your experience level can command. ────────────────────────────────────────────────────────────── WORKED EXAMPLE (Designer, 3 years experience, full-time) ────────────────────────────────────────────────────────────── Annual income goal: $80,000 Billable hours/year: 1,000 hrs (25 hrs/wk × 40 weeks) Baseline rate: $80.00/hr Overhead breakdown: Self-employment tax: $20,000 (25%) Health insurance: $4,800 ($400/mo) Software: $2,400 ($200/mo) Equipment (amortized): $1,200 Accounting: $800 Marketing: $600 Total overhead: $29,800 ≈ 37% of goal Floor rate: $80.00 × 1.37 = $109.60/hr + 15% profit: $109.60 × 1.15 = $126.04/hr → $125/hr Day rate: $125 × 7.5 = $937.50 → $950/day ────────────────────────────────────────────────────────────── NEXT STEPS ────────────────────────────────────────────────────────────── 1. Compare your calculated rate to market rates (see rate comparison template) 2. If your rate is below market: great — you have room to charge more 3. If your rate is above market: consider which clients pay premium rates, or look for ways to reduce overhead 4. Build a professional proposal template that presents your rate with confidence Get done-for-you proposal, invoice, and contract templates at: https://solostack.madethis.app ===================================== © SoloStack | solostack.madethis.app Free to use and share =====================================