Hourly rate calculator
What do you need to charge per hour to make ends meet?
Your profit before tax, so not your net figure.
Insurance, materials, car, software, bookkeeping.
52 minus holidays, public holidays and sick days.
The share of your hours you invoice. Sales and admin do not count.
Result
Excluding VAT and before tax.
This calculator gives an indication. Only your tax return and your own books are decisive.
How does it work?
The sum is simple: your revenue has to cover the profit you want plus your business costs, spread across the hours you actually invoice. That last step is where it usually goes wrong — sales, quotes and admin are real hours that nobody pays for.
So do not enter 52 weeks and 100% billable. Account for holidays, public holidays and sick days, and use a billable share of 60 to 80%. The rate that comes out excludes VAT and is before tax; what you keep from it is what the gross-to-net calculator works out.
Frequently asked questions
- How many of my hours are billable?
- For most freelancers it sits between 60% and 80% of the hours worked. If you are just starting out, use a lower number: finding clients takes more of your time.
- Does this rate include VAT?
- No, it excludes VAT. VAT is the tax office's money passing through your account and is not part of your revenue. Convert it with the VAT calculator.
- Should I include pension and insurance?
- Yes. Put your disability insurance, your pension contributions and your buffer for quiet months into the profit you want or into your costs — otherwise you are selling yourself short.
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