How do I convert a salary into a freelance rate?

Take the salary, add roughly 30% for the benefits and stability you are giving up, add your business costs, then divide by realistic billable hours rather than 2,000. The result is usually higher than people expect, and that is the point.

How many hours can I realistically bill?

Twenty to thirty a week for most people working full time. The rest goes on finding work, invoicing, admin and the meetings nobody pays for.

Should I charge hourly or a fixed price?

Hourly protects you when the scope is vague. Fixed price pays better when you know the work well and can finish it faster than you quoted. Start hourly with a new client, move to fixed once you can predict the work.

Freelance hourly rate calculator

The mistake almost everyone makes is dividing a target salary by 2,000 hours. That assumes every working hour is billable and that nothing costs money, and neither is true.

A realistic rate accounts for the weeks you do not work, the hours you spend finding work rather than doing it, your own costs, and the tax that used to be deducted before you saw the money.

Rate to charge

₹1,841 an hour

₹14,727 a day, or ₹46,023 a week at your billable hours

Income you want to keep: ₹15,00,000
Revenue needed before tax: ₹18,75,000
Plus business costs: ₹1,50,000
Total revenue needed: ₹20,25,000
Billable weeks: 44
Billable hours a year: 1,100
Hourly rate: ₹1,841
Day rate: ₹14,727
Monthly retainer equivalent: ₹1,68,750

Everything above is worked out in your browser. Nothing you type is sent to us or saved anywhere.

How this is worked out

Billable weeks are fifty-two minus the weeks you take off.
Billable hours are those weeks multiplied by your billable hours a week.
Your target is grossed up for tax, then business costs are added, to get the revenue you need.
The rate is that revenue divided by billable hours.

What this does not cover

This does not include GST. If you are registered, GST sits on top of your rate rather than inside it.
You have no paid leave, no employer PF and no gratuity. A salaried package worth the same is worth more.
Presumptive taxation under Section 44ADA lets many professionals declare half their receipts as income, which changes the effective rate substantially.

Questions people ask

How do I convert a salary into a freelance rate?: Take the salary, add roughly 30% for the benefits and stability you are giving up, add your business costs, then divide by realistic billable hours rather than 2,000. The result is usually higher than people expect, and that is the point.
How many hours can I realistically bill?: Twenty to thirty a week for most people working full time. The rest goes on finding work, invoicing, admin and the meetings nobody pays for.
Should I charge hourly or a fixed price?: Hourly protects you when the scope is vague. Fixed price pays better when you know the work well and can finish it faster than you quoted. Start hourly with a new client, move to fixed once you can predict the work.

Where these figures come from

Rates and rules on this page were last checked against the source on 31 August 2026. Tax law changes; check the source before you rely on a number for a decision.

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