Freelancer Rate Calculator
Freelancers often underprice themselves by ignoring taxes, business costs, non-billable time, and vacation. This calculator works backwards from your target monthly take-home — accounting for income tax, GST compliance costs, sick days, holidays, and unbillable admin time — to tell you the minimum rate you must charge.
Frequently Asked Questions
What counts as a billable hour for freelancers?+
Only time directly working on client deliverables is billable. Non-billable time (which typically consumes 20–30% of a freelancer's week) includes: sending proposals, invoicing, bookkeeping, marketing, meetings that didn't convert, skill development, and admin. Most freelancers underestimate this, leading to underpricing.
How do taxes work for Indian freelancers?+
Freelancers pay income tax under the head "Profits and Gains of Business/Profession." You can opt for presumptive taxation (Section 44ADA) — 50% of gross receipts is deemed profit; tax paid on that. If turnover exceeds ₹50L, GST registration is mandatory and you charge 18% GST. Advance tax applies quarterly if liability > ₹10,000.
How do I know when to raise my rate?+
Raise rates when: (1) you're turning down work due to capacity, (2) every prospect accepts your rate immediately (means you're below market), (3) your costs have increased, or (4) you've developed new skills. Aim to raise rates 10–20% per year. Existing clients get 6 months notice; new clients get the new rate immediately.
Should I quote hourly or project-based?+
Project rates are generally better for experienced freelancers — you're paid for value delivered, not time. Hourly rates penalise efficiency (you get paid less as you get faster). Quote project rates with a clear scope and a change-order clause. Use hourly only for open-ended, ongoing, or vague-scope work.