How many billable hours should a freelancer plan for?

Most service businesses bill 60–65% of available hours — roughly 25 hours per 40-hour week. The remaining time covers admin, business development, training and holidays. This calculator defaults to 25 billable hours per week and 46 working weeks per year.

What is a good day rate for a UK freelancer?

UK freelance day rates vary widely by sector: web/software developers typically charge £400–800/day, marketing consultants £300–600/day, accountants £200–500/day, and solicitors £250–600/day. Use this calculator to work out the minimum rate you need to hit your income target.

Should I add a profit margin on top of costs?

Yes — a profit margin allows you to reinvest in the business, build reserves, and handle unexpected costs without immediately raising rates. Most service businesses target 15–30% net profit margin above break-even.

Service Pricing Calculator

Set the right rate — calculate your hourly rate, day rate and project fees from your income target, overheads and margin.

Service Pricing Calculator

Work out your minimum viable rate from income target + costs + margin

Income target

Annual take-home target (£)

Net income you want after tax

Tax & NI mode

Simple (add 30% uplift automatically)Advanced

Capacity

Billable hours per week

Most service businesses bill ~25 h of a 40 h week

Weeks worked per year

46 accounts for holidays and sick leave

Costs & margin

Annual business overhead (£)

Rent, software, insurance, travel, subscriptions

Desired profit margin %

On top of all costs — 15–30% is typical

How to price your services in the UK

Many freelancers and service businesses undercharge because they forget to account for taxes, non-billable time, overheads and profit. This calculator builds up your rate from the bottom up.

Step 1 — Income target

Start with the take-home pay you need after tax and NI. Then add back estimated tax to get your gross income requirement. Self-employed people in the UK typically pay 20–40% income tax plus 9% Class 4 NI — toggling Simple mode adds a 30% uplift automatically.

Step 2 — Billable hours

Most service businesses can only bill 60–65% of available time. The default of 25h/week × 46 weeks = 1,150 billable hours per year is a realistic starting point.

Step 3 — Overheads and margin

Add annual business costs (rent, software, insurance, professional memberships, travel) and your desired profit margin. The calculator works out the minimum day rate you must charge to hit all three targets.

Disclaimer: This calculator is for guidance only. Always consult a qualified accountant for your specific tax position.