Day Rate Calculator

Free No sign-up

Set a freelance day rate that covers taxes, expenses, and non-billable time, or budget what hiring a contractor will cost.

$

What you want to keep after taxes, per year

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Self-employment + income tax (US self-employed: ~25–30%)

$

Software, equipment, insurance

Days you won’t work or bill clients

%

Admin, sales, and marketing you can’t bill to clients

Advanced options
$

Health insurance, retirement contributions, etc.

%

Reserve for slow periods or unpaid invoices

52 weeks × 5 days

Enter your numbers to see your day rate

What is a day rate?

A day rate is the flat fee you charge a client for one day of work — and for freelancers, setting it badly is a fast way to lose money. The common shortcut, dividing your target income by the number of working days in a year, produces a number that looks fair and quietly underpays you. It ignores the two things that hit independent workers hardest: taxes you pay yourself, and the days you cannot bill at all.

No freelancer bills 260 days a year. Vacation, holidays, and sick days come off the top. So does non-billable time — the admin, sales, and marketing that keeps the business running but never lands on an invoice. On top of that, you owe self-employment tax that a salaried employee never sees. This calculator works backwards from what you actually want to keep, then adds the tax, expenses, and lost days back in to show the rate that gets you there.

Billable days/year(working days − days off) x (1 − non-billable %)
Revenue needed(take-home / (1 − tax rate)) + expenses
Day raterevenue needed / billable days

For example, if you want $60,000 in your pocket after a 25% tax rate, take 30 days off, and lose 25% of the rest to non-billable work, you have about 173 billable days and need roughly $80,000 in revenue — a day rate of about $464, not the $231 a naive income split would suggest.

How to use this calculator

Pick your mode. Use Freelancer mode to find what you should charge per day. Switch to Client mode to budget what a contractor at a known day rate will cost over a set number of days.

Enter your take-home goal and tax rate. Put in the income you want to keep after taxes, then the combined self-employment and income tax rate you pay — US freelancers usually land around 25 to 30 percent.

Set your days off and non-billable time. Add up your vacation, holidays, and sick days, then estimate the share of working time that goes to admin and sales. Most freelancers bill only 60 to 75 percent of their time.

Read the breakdown. The stacked bar shows where your yearly billings go — take-home, tax, expenses, and buffer — so you can see exactly why your rate has to be what it is. If you would rather price by the hour, our Freelance Hourly Rate Calculator runs the same math per hour.

Frequently Asked Questions

What is a day rate?
A day rate is a flat fee for one full day of work, usually based on an eight-hour day. Freelancers and contractors use it to quote projects without tracking every hour. A fair day rate covers your target income plus the taxes, expenses, and non-billable time that an employee never has to think about.
How do you calculate a day rate?
Start with the income you want to keep, add your taxes and business expenses to find the revenue you need, then divide by the days you can actually bill in a year. Billable days are your working days minus vacation, holidays, and the admin time you cannot charge for. For most freelancers that is roughly 170 to 200 days, not 260.
What is a good day rate for a freelancer?
A good day rate is one that covers your income goal after taxes, expenses, and unbillable time, not just your salary divided by working days. As a rough guide, a freelancer who wants $60,000 take-home in the US needs a day rate near $450 to $500 once taxes and non-billable time are added in.
Should my day rate be 8 times my hourly rate?
Not exactly. A day rate is often a little less than eight times your hourly rate because clients booking a full day expect a small volume discount. If you charge $60 per hour, a day rate of $440 to $480 is common rather than a straight $480.
What is the difference between a day rate and a project rate?
A day rate charges for time, so you are paid for every day you work regardless of output. A project rate charges a fixed fee for a defined deliverable, which rewards you for working efficiently but puts the risk of scope creep on you. Day rates suit open-ended or ongoing work, while project rates suit clearly defined jobs.