Stop undercharging. Enter your income goal, expenses, and hours — get your exact minimum hourly rate, recommended rate, and a full breakdown of why. Used by 70+ currencies worldwide.
Most freelancers set their rate by guessing what "sounds right" or copying what they see online. The problem: a rate that works for a developer in San Francisco is wrong for a designer in Manila or a writer in Lagos. Your rate must be based on your numbers — your income goal, your tax rate, your expenses, and how many hours you can realistically bill.
The Rateceipt formula is straightforward. Add your desired annual income to your annual business expenses and your tax provision. Divide the total by your billable hours per year (hours per week × 46 weeks). That's your minimum rate — the floor below which you lose money on every hour. Multiply by 1.3 and you have a recommended rate with a profit buffer built in.
52 weeks assumes you work every single week of the year with zero time off. In practice, freelancers lose weeks to vacation, sick days, onboarding new clients, admin, and slow periods. Using 52 weeks means your rate is secretly too low — you'll hit your target only if nothing goes wrong. 46 weeks (4 weeks vacation + 2 weeks buffer) is the realistic standard used by freelance finance professionals.
A day rate is simply your hourly rate × 8. It's the standard billing unit for on-site work, short-term contracts, agency relationships, and many creative industries. If your recommended hourly rate is $75/hr, your day rate is $600. Always quote a day rate to clients who want you on-site — it prevents scope creep around "just one more thing."
Charging your minimum rate means a single slow month, an unpaid invoice, or a rate negotiation pushes you below break-even. The 30% buffer above minimum is the freelance industry's most commonly recommended safety margin. It covers:
Tax rates vary widely by country and income level. As a rough guide: US freelancers typically set aside 25–30% (income tax + self-employment tax); UK freelancers 20–40% depending on earnings; Philippine freelancers 8–20%; most EU countries 25–45%. When in doubt, use a slightly higher rate — it's better to over-provision and return money to yourself than to face a tax bill you can't cover. Consult a local accountant for your exact situation.
Your Rateceipt result is your floor, not your ceiling. Charge more for rush work, specialized skills, enterprise clients, or projects outside your usual scope. The recommended rate is a great starting point for a standard client quote — but a Fortune 500 company should pay more than a small startup, and a 48-hour turnaround should cost more than a 2-week project.