Most freelancers price off a guess. This works backward from the income you actually want, after accounting for the days you won't be billing — vacation, admin, sick days, slow weeks.
Note: this gives you a floor, not a final price. Market rate, experience, and demand can push it higher — but if your quote is below this number, you're working for less than your goal.
Add your desired annual income to your yearly business expenses, then divide by the number of days you'll actually bill in a year — not 365, but your real working days after subtracting vacation, sick time, and admin work.
A day you're actually doing paid client work — not days spent on marketing, invoicing, learning, or admin. Most freelancers bill far fewer days per year than they expect.
The income figure you enter should be your desired take-home pay. You'll still need to set aside money for taxes separately, since this calculator doesn't account for your specific tax situation.
A day rate is what you charge for a full day of work, regardless of exact hours. An hourly rate is what you charge per hour. This tool gives you both, derived from the same income goal.
Treat it as a floor, not a final price. Market demand, your experience level, and project complexity can justify charging more — but pricing below this number means missing your own income goal.