Current for 2026•As of: July 2026

Hourly Rate Calculator freelancers & self-employed.

Calculate a realistic hourly rate – including taxes, health insurance, business costs and billable hours

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Your income goal

EUR/month
1,500 EUR/month15,000 EUR/month

Working time

days
1 days7 days
hours
4 hours12 hours
days
0 days45 days
days/year
0 days/year30 days/year

Non-billable working time

Share of working time that cannot be billed

%
0 %40 %
%
0 %30 %
%
0 %20 %

Insurance & retirement provision

EUR/month
0 EUR/month2,000 EUR/month
% of revenue
0 % of revenue25 % of revenue

Tip for freelancers:

  • Don't underestimate non-billable time
  • Plan enough vacation and sick days
  • Build reserves for slow months
  • Don't forget retirement provision

Recommended hourly rate (net)

90 EUR

incl. VAT: 104 EUR

Day rate

€696.00

Annual revenue goal

€102,279.00

Billable time

Working days/year

210 days

Billable hours

1176 h/year

Billable share

70%

Billable hours/day

5.6 h

Annual revenue breakdown

Net income
€48,000.00

46.9%

Taxes
€17,026.00

16.6%

Social security
€15,136.00

14.8%

Business costs
€8,018.82

7.8%

Reserves
€14,098.00

13.8%

Taxes & contributions (annual)

Income tax€17,026.00
Health insurance€12,206.00
Long-term care insurance€2,929.00
Effective tax rate18.31%

What does +10 EUR/hour get you?

At 1176 billable hours:

+€11,760.00 / year

(before tax, approx. +€7,056.00 net)

Important note

These calculations are for non-binding information only and do not replace professional tax advice. All information without guarantee. Learn more

Sources & calculation basis

Our calculations are based on the following official sources (as of: July 2026):

Related guides

Becoming Self-EmployedTax for the Self-Employed

The right hourly rate for freelancers

Many freelancers and self-employed professionals make the mistake of setting their hourly rate too low. They compare it to their former employee salary without accounting for the additional costs of self-employment.

Our calculator shows you which hourly rate you really need to reach your income goal - taking into account all costs, taxes and non-billable time.

Costs freelancers often underestimate

  1. Non-billable time: Acquisition, writing proposals, bookkeeping, admin - often 20-40% of working time
  2. Vacation and illness: As self-employed, there's no paid time off - you need to budget for it yourself
  3. Social security: Full contribution to health and long-term care insurance, no employer share
  4. Retirement provision: No statutory pension - you have to provide for it yourself
  5. Reserves: Slow periods, payment defaults, unforeseen expenses

How your hourly rate is calculated

The formula is simple, but the input values need to be realistic:

Hourly rate formula

Hourly rate formula
ItemAmount
Desired net income€48,000/year
+ Taxes (estimated)€20,000/year
+ Social security€8,000/year
+ Business costs€6,000/year
+ Reserves (10%)€8,200/year
= Total requirement€90,200/year
÷ Billable hours1,200 h/year
= Hourly rate€75.17

With typical figures (€4,000 net income target, 1,200 billable hours/year), you quickly end up at hourly rates of €80-120 - significantly more than many beginners charge.

Billable vs. total working time

A common mistake: out of 8 hours of work a day, you can't bill 8 hours. Realistic billable rates are 60-75% of your working time. The rest goes towards acquisition, admin and unpaid project work.

Typical billable hours per year

60% rate
approx. 1,200 h/year - conservative, for beginners with heavy acquisition effort
70% rate
approx. 1,400 h/year - realistic for established freelancers
75% rate
approx. 1,500 h/year - optimistic, with well-established processes
80%+ rate
approx. 1,600+ h/year - only with external support (VA, accountant)

Calculation: with 220 working days/year (365 - 104 weekend days - 11 public holidays - 30 vacation days) and 8 hours/day, that's 1,760 total hours. At 70% billability, 1,232 billable hours remain.

Day rate vs. hourly rate

Many freelancers prefer to bill using day rates. This has advantages: clients find it harder to compare directly with employee salaries, and you have more flexibility in scheduling your time.

Converting hourly rate to day rate

Converting hourly rate to day rate
ItemAmount
Hourly rate€100
× Hours per day8 h
= Day rate€800

The rule of thumb is: day rate = hourly rate × 8 hours. At an hourly rate of €100, that's €800 per day. Some freelancers use a lower factor (e.g. × 6) to make longer project days more attractive.

When should you raise your hourly rate?

Regularly adjusting your hourly rate is not just legitimate but necessary to keep pace with rising costs and growing expertise.

Reasons to raise your hourly rate

Consistently booked at 100%
You have to turn down requests - a clear sign your price is too low
Clients accept without negotiating
If no one negotiates, your price is probably too low
Built up specialized knowledge
Expert knowledge justifies higher rates
Cost of living rising (inflation)
An annual adjustment of 3-5% is standard
Expanded qualifications
Certificates, new skills or technologies give you negotiating leverage
Demonstrable added value
Faster delivery, higher quality or better results

Tip: Only raise prices for new projects or clients. Existing clients should be informed in good time (3-6 months in advance) and may be given a transition period.

Frequently asked questions

Everything important about calculating your hourly rate

The hourly rate results from: (desired net annual income + income tax + health/long-term care insurance + business costs + reserves) ÷ billable hours per year. Important: only use billable time - typically 60-75% of working time (approx. 1,200-1,500 h/year). The rest goes towards acquisition, admin and continuing education.

As a rough guide: with a net income target of €4,000/month and 1,200 billable hours, most freelancers land at a minimum hourly rate of €80-120. IT freelancers often achieve €90-150, while copywriters and designers tend towards €60-90. What matters is realistically budgeting for all cost items - not using your former employee salary as a baseline.

Billable hours are the hours you can directly invoice to clients. With a 40-hour week and 220 working days per year (after vacation and public holidays), that comes to 1,760 total hours. Of these, 60-70% are realistically billable: 1,056-1,232 hours. The rest goes towards acquisition, proposals, bookkeeping and unpaid project time.

Day rates are common in many IT and consulting settings because clients find it harder to compare them directly to employee wages. Rule of thumb: day rate = hourly rate × 8. At €100/h, that's an €800 day rate. For short engagements and creative professions, hourly rates or flat fees are often more practical.

Self-employed professionals choose between statutory health insurance (GKV, approx. €800-900/month at mid-range income, including long-term care insurance) and private health insurance (PKV, which varies significantly by plan and age). Health insurance costs must be fully factored into your hourly rate - there is no employer contribution.

Typical signals for a price increase: you're consistently booked at 100%, clients accept quotes without negotiating, you've built up specialized knowledge, or inflation has raised your cost of living. An annual adjustment of 3-5% is standard practice. Larger jumps (10-20%) can be justified by clear added value such as faster delivery or demonstrable results.

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