★ MONEY · FREELANCE · DAY RATES
Day rate $696.97 — $87.12 an hour, $3,484.85 a week, $12,777.78 a month, $153,333.33 a year. $100,000 take-home at 220 billable days, 15% overhead, 25% tax. Enter your numbers to work out yours.
A $100,000 take-home target is not $454.55 a day. This calculator grosses your target up for overhead and tax, then divides by your billable days — and works backwards from any day rate, day count, overhead, or tax buffer.
The mistake almost every new freelancer makes is dividing the salary they want by the days they will work. A $100,000 take-home target divided by 220 billable days is $454.55 a day — and it is wrong, because it forgets two things: the overhead of running the business, and the tax. The day rate has to cover the take-home target PLUS overhead, grossed up for tax. The formula is: annual gross needed = take-home × (1 + overhead) / (1 − tax). On the defaults — $100,000 take-home, 15% overhead, 25% tax — that is $100,000 × 1.15 / 0.75 = $153,333.33 a year gross. The day rate is the gross divided by the billable days: $153,333.33 / 220 = $696.97 a day. The hourly rate is the day rate divided by the hours in a day: $696.97 / 8 = $87.12 an hour. The weekly rate is the day rate times five: $696.97 × 5 = $3,484.85. The monthly gross is the annual gross divided by 12: $153,333.33 / 12 = $12,777.78. The gross-up roughly doubles the naive answer: $454.55 a day leaves you short by more than half, because every dollar you keep has to survive both the overhead and the tax first.
| Scenario | Annual gross | Day rate | Hourly rate | Weekly | Monthly |
|---|---|---|---|---|---|
| Default | $153,333.33 | $696.97 | $87.12 | $3,484.85 | $12,777.78 |
| Target income $75,000 | $115,000.00 | $522.73 | $65.34 | $2,613.64 | $9,583.33 |
| Target income $150,000 | $230,000.00 | $1,045.45 | $130.68 | $5,227.27 | $19,166.67 |
| 180 billable days | $153,333.33 | $851.85 | $106.48 | $4,259.26 | $12,777.78 |
| 250 billable days | $153,333.33 | $613.33 | $76.67 | $3,066.67 | $12,777.78 |
| Overhead 0% | $133,333.33 | $606.06 | $75.76 | $3,030.30 | $11,111.11 |
| Overhead 30% | $173,333.33 | $787.88 | $98.48 | $3,939.39 | $14,444.44 |
| Tax buffer 20% | $143,750.00 | $653.41 | $81.68 | $3,267.05 | $11,979.17 |
| Tax buffer 30% | $164,285.71 | $746.75 | $93.34 | $3,733.77 | $13,690.48 |
| 6 hours a day | $153,333.33 | $696.97 | $116.16 | $3,484.85 | $12,777.78 |
| 10 hours a day | $153,333.33 | $696.97 | $69.70 | $3,484.85 | $12,777.78 |
At the defaults — target income $100,000, 220 billable days, overhead 15%, tax buffer 25%, 8 hours a day — the annual gross needed is $153,333.33, the day rate is $696.97, the hourly rate is $87.12, the weekly rate is $3,484.85, and the monthly gross is $12,777.78. Check the identities: gross = income × (1 + overhead) / (1 − tax); day = gross / days; hourly = day / hours; weekly = day × 5; monthly = gross / 12. Monthly figures are rounded to the cent, so monthly × 12 can differ from the annual gross by a few cents; totals are computed from unrounded values, so rounded parts may differ by a cent from their rounded sum.
Setup: target income $100,000, 220 billable days, overhead 15%, tax buffer 25%, 8 hours a day.
Line 1 — the annual gross needed. $100,000 × (1 + 0.15) / (1 − 0.25) = $100,000 × 1.15 / 0.75 = $153,333.33.
Line 2 — the day rate. $153,333.33 / 220 = $696.97.
Line 3 — the hourly rate. $696.97 / 8 = $87.12.
Line 4 — the weekly rate. $696.97 × 5 = $3,484.85.
Line 5 — the monthly gross. $153,333.33 / 12 = $12,777.78.
Line 6 — the naive answer, for comparison. $100,000 / 220 = $454.55 — the rate that forgets overhead and tax, and leaves you $242.42 a day short.
Reverse: the day rate for an $80,000 take-home target is $557.58 (exact 557.5758); at $557.58 the take-home is $80,000.61 ($0.61 over), at $557.57 it is $79,999.17 ($0.83 under) — $557.58 is the nearest. The billable days for a $120,000 take-home target at $800/day are 230 (exact); at 230 days the take-home is $120,000.00 exactly, at 229 days it is $119,478.26. The overhead for a $650/day rate is 7.25% (exact); at 7.25% the day rate is $650.00 exactly. The tax buffer for a $750/day rate is 30.30% (exact 30.3030%); at 30.30% the day rate is $749.97 ($0.03 under $750). At $900/day, 200 billable days, 20% overhead and 30% tax, the take-home is $105,000.00 on a gross of $180,000.00.
Target income $75,000: gross $115,000.00, day $522.73, hourly $65.34. A lower target drops the rate by almost $175 a day.
Target income $150,000: gross $230,000.00, day $1,045.45, hourly $130.68. Six figures of take-home needs a four-figure day rate.
180 billable days: gross $153,333.33, day $851.85, hourly $106.48. Fewer billable days means each one has to earn more — the gross does not change, only the rate.
250 billable days: gross $153,333.33, day $613.33, hourly $76.67. More billable days spread the same gross thinner.
Overhead 0%: gross $133,333.33, day $606.06, hourly $75.76. Even with no overhead at all, the rate is still $606.06 — a $600/day rate cannot fund a $100k take-home at 220 days and 25% tax.
Overhead 30%: gross $173,333.33, day $787.88, hourly $98.48. Heavy overhead adds almost $91 a day to the rate.
Tax buffer 20%: gross $143,750.00, day $653.41, hourly $81.68. A lower tax buffer is the cheapest way to lower the rate — if your real tax rate is 20%, charge for 20%, not 25%.
Tax buffer 30%: gross $164,285.71, day $746.75, hourly $93.34. Five points of tax adds almost $50 a day.
6 hours a day: day $696.97, hourly $116.16. The day rate does not change — only the hourly rate does, because the same day is split into fewer hours.
10 hours a day: day $696.97, hourly $69.70. Longer days make the hourly rate look cheaper, but the day rate is what the client pays.
Reverse — the other way round: the day rate for an $80,000 take-home target is $557.58 (exact 557.5758); the billable days for a $120,000 target at $800/day are 230 (exact); the overhead for a $650/day rate is 7.25% (exact); the tax buffer for a $750/day rate is 30.30% (exact 30.3030%); at $900/day, 200 days, 20% overhead and 30% tax, the take-home is $105,000.00.
The model assumes the overhead and the tax are percentages of the gross-up as stated: gross = income × (1 + overhead) / (1 − tax), and it assumes every billable day earns the same day rate, the overhead is a fixed percentage, and the tax buffer is a flat rate. It assumes 220 billable days a year — about 260 weekdays minus holidays, sick days, and unpaid admin — and 8 billable hours a day. It leaves out the unpaid time you spend finding clients, the gaps between contracts, retirement contributions, and health insurance beyond what sits in the overhead. With a target income of $0, everything is $0.00. With overhead of 100%, the day rate is $1,212.12 (gross $266,666.67, hourly $151.52). With a tax buffer of 0%, the day rate is $522.73 (gross $115,000.00, hourly $65.34). With 365 billable days, the day rate is $420.09 (hourly $52.51) — but nobody bills 365 days a year. With 0 billable days the calculator shows an error, not $0, because a day rate needs a day to divide by. Rounding convention: totals are computed from unrounded values, so rounded parts may differ by a cent from their rounded sum; the reverses are nearest-value solutions, and the exact unrounded figures (557.5758, 230, 7.25%, 30.3030%) are stated wherever the rounded figures appear.
| Output | Formula | What it means |
|---|---|---|
| Annual gross needed | income × (1 + overhead) / (1 − tax) | $153,333.33. |
| Day rate | annual gross / billable days | $696.97. |
| Hourly rate | day rate / hours per day | $87.12. |
| Weekly rate | day rate × 5 | $3,484.85. |
| Monthly gross | annual gross / 12 | $12,777.78. |
| Annual gross | same as annual gross needed | $153,333.33. |
| Day rate for an $80,000 take-home target | $80,000 × (1 + overhead) / (1 − tax) / days | $557.5758 → $557.58. |
| Billable days for a $120,000 target at $800/day | $120,000 × (1 + overhead) / (1 − tax) / 800 | 230 days → 230 days. |
| Overhead for a $650/day rate | (650 × days × (1 − tax) / income − 1) × 100 | 7.25% → 7.25%. |
| Tax buffer for a $750/day rate | (1 − income × (1 + overhead) / (750 × days)) × 100 | 30.3030% → 30.30%. |
| Take-home at $900/day, 200 days, 20% overhead, 30% tax | 900 × 200 × (1 − 0.30) / (1 + 0.20) | $105,000.00. |
| Target income $75,000 | same model | Gross $115,000.00, day $522.73, hourly $65.34 — weekly $2,613.64, monthly $9,583.33, annual $115,000.00. |
| Target income $150,000 | same model | Gross $230,000.00, day $1,045.45, hourly $130.68 — weekly $5,227.27, monthly $19,166.67, annual $230,000.00. |
| 180 billable days | same model | Gross $153,333.33, day $851.85, hourly $106.48 — weekly $4,259.26, monthly $12,777.78, annual $153,333.33. |
| 250 billable days | same model | Gross $153,333.33, day $613.33, hourly $76.67 — weekly $3,066.67, monthly $12,777.78, annual $153,333.33. |
| Overhead 0% | same model | Gross $133,333.33, day $606.06, hourly $75.76 — weekly $3,030.30, monthly $11,111.11, annual $133,333.33. |
| Overhead 30% | same model | Gross $173,333.33, day $787.88, hourly $98.48 — weekly $3,939.39, monthly $14,444.44, annual $173,333.33. |
| Tax buffer 20% | same model | Gross $143,750.00, day $653.41, hourly $81.68 — weekly $3,267.05, monthly $11,979.17, annual $143,750.00. |
| Tax buffer 30% | same model | Gross $164,285.71, day $746.75, hourly $93.34 — weekly $3,733.77, monthly $13,690.48, annual $164,285.71. |
| 6 hours a day | same model | Gross $153,333.33, day $696.97, hourly $116.16 — weekly $3,484.85, monthly $12,777.78, annual $153,333.33. |
| 10 hours a day | same model | Gross $153,333.33, day $696.97, hourly $69.70 — weekly $3,484.85, monthly $12,777.78, annual $153,333.33. |
The math is exact for the numbers you enter: annual gross = income × (1 + overhead) / (1 − tax); day rate = gross / billable days; hourly rate = day rate / hours per day; weekly = day rate × 5; monthly = gross / 12. What the model cannot do is know your real tax rate: check it, because the tax buffer is a flat percentage and real tax is progressive — and check the overhead, because the business costs are the part most freelancers underestimate. It assumes every billable day earns the same day rate, the overhead is a fixed percentage of the take-home, and the tax buffer is a flat rate. It leaves out the unpaid time spent finding clients, the gaps between contracts, retirement contributions, and health insurance beyond what sits in the overhead. It is a rate calculator, not tax advice: for what lands in your bank account, see the take-home pay calculator; for what your hour is worth, see the freelance hourly rate calculator.
Bright Side Kit. "Day Rate Calculator: Freelance & Contractor Pay 2026" https://brightoolbox.com/day-rate-calculator/ Accessed October 25, 2026.For a $100,000 take-home target at 220 billable days, 15% overhead and 25% tax, $696.97 a day. The formula is: annual gross = take-home × (1 + overhead) / (1 − tax), then day rate = gross / billable days. That is $100,000 × 1.15 / 0.75 = $153,333.33 a year, divided by 220 days. A $100,000 target is not $454.55 a day — the gross-up roughly doubles it.
Start with the take-home you want, add overhead, gross up for tax, then divide by your billable days. Take your target income, multiply by (1 + overhead), divide by (1 − tax), then divide by the days you actually bill. With a $100,000 target, 15% overhead, 25% tax and 220 days, that is $153,333.33 / 220 = $696.97 a day, or $87.12 an hour over 8 hours.
About 220 for most freelancers. A year has roughly 260 weekdays, but holidays, sick days, and unpaid admin time — finding clients, invoicing, learning — leave most freelancers with around 220 billable days. At 180 billable days the same $100,000 target needs $851.85 a day; at 250 days it needs $613.33 a day.
$557.58 a day (exact 557.5758). At $557.58 a day, 220 billable days, 15% overhead and 25% tax, the take-home is $80,000.61 — $0.61 over — and at $557.57 it is $79,999.17 — $0.83 under — so $557.58 is the nearest. At $800 a day, a $120,000 target takes 230 billable days exactly.
Your day rate is still $606.06 for a $100,000 target. With no overhead at all, the gross is $100,000 / 0.75 = $133,333.33, and the day rate is $133,333.33 / 220 = $606.06. A $600/day rate cannot fund a $100k take-home at 220 days and 25% tax — the tax alone pushes the rate past $600.
No — the day rate stays $696.97; only the hourly rate changes. At 6 hours a day the hourly rate is $116.16; at 10 hours it is $69.70. The client pays for the day, not the hour, so quote the day rate and let the hours move the hourly figure, not the other way round.