Full cost-of-business analysis to find your true freelance rate including all expenses.
Setting your freelance rate is one of the most uncomfortable things about going independent — too low and you're working yourself into the ground, too high and you worry about losing clients. This calculator helps you arrive at a number that actually makes sense for your situation.
The key insight most people miss when setting freelance rates: you are not comparing yourself to an equivalent employee salary. A freelancer on $100/hour working 30 billable hours a week is not earning the equivalent of $150,000/year. By the time you account for unpaid admin, sick days, public holidays, business expenses, super contributions you need to fund yourself, and the periods between contracts, the real hourly equivalence to an employment salary is much closer than it looks.
This calculator works out the rate you need to charge based on your target annual income, working assumptions, and business costs — so you can quote with confidence rather than guessing.
Because freelancers cover costs that employers normally absorb: superannuation, professional insurance, software subscriptions, equipment, accounting fees, marketing time, and all the non-billable admin hours. A freelancer billing $100/hour may effectively earn less per hour worked than an employee on $70,000 salary once all those factors are counted.
Most freelancers bill between 15-25 hours per week sustainably. The rest goes to admin, sales, marketing, professional development, and the gaps between projects. Assuming 40 billable hours when setting your rate is a recipe for burnout or a shortfall.
Clear written agreements with defined deliverables, revision limits, and a change request process are the most effective tools. Quote a day rate rather than a fixed project rate when scope is uncertain, so additional work is priced accordingly rather than absorbed.
If your business turnover exceeds $75,000 per year, you're required to register for GST and charge it on your services. If you're under the threshold, registration is optional but may be worth it if your clients are GST-registered businesses that can claim it back.