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Self-Employed Hourly Rate Calculator

Self-Employed Hourly Rate Calculator

Work out the minimum hourly or daily rate you need to charge to hit a take-home income target, after realistic billable hours, expenses, Income Tax and National Insurance.

£
days
hrs
wks
%

Admin, marketing, finding work

£

Region

Minimum rates

Minimum Hourly Rate

£37.81

Daily Rate£283.61
Monthly Revenue Required£4,386
Annual Turnover Required£52,638
Billable Hours per Year1392
Billable Days per Year186

At that turnover

Taxable Profit£49,638
Income Tax−£7,414
Class 4 National Insurance−£2,224
Take-Home£40,000

Because Income Tax and National Insurance are progressive, the rate needed to hit a take-home target isn't a simple percentage markup - this is solved against the same engine as the Self Employed Tax Calculator. Treat this as a minimum: most freelancers price in a buffer for quiet periods, non-paying clients and business growth.

How the minimum rate is worked out

First, this works out your realistic billable hours: working days per week and hours per day, minus holiday weeks and non-billable time (admin, marketing, finding work), gives a genuine capacity figure rather than assuming every working hour is chargeable.

Then it solves backwards through the tax system

Because Income Tax and Class 4 National Insurance are progressive, there's no fixed percentage you can gross a take-home target up by - the marginal rate on your last pound of profit is higher than on your first. This calculator solves for the turnover that actually produces your target take-home, using the same tax engine as the Self Employed Tax Calculator, then divides that by your billable hours and days.

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