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Freelancer Rate Calculator

Freelancer Rate Calculator is part of Toolspire and is ready as soon as this page loads. ₹1,20,000 desired, 1,000 billable hours and 0% tax is ₹120 an hour. At 20% tax the charge becomes ₹150, because 150 × 0.80 = 120.

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What you can do here

The hours are billable hours

A 2,000-hour year that includes unpaid admin will underprice the work. Leave non-billable time out of the count.

Tax gross-up

The percent comes off the invoice. The formula divides by what remains, it does not subtract the percent from the rate.

Zero tax is the identity

With no leakage, the rate is just the annual goal divided by the hours.

The sequence

How to use the Freelancer Rate Calculator

  1. 1

    Type what you want to keep, not what you want to invoice

    The gross-up adds the tax on top.

  2. 2

    Count hours you can actually bill

    Leave out leave, pitching and bookkeeping, or include their cost in the annual goal instead.

  3. 3

    Check 150 against 120

    At 20%, 150 an hour for 1,000 hours invoices ₹1,50,000, and 80% of that is the ₹1,20,000 you wanted.

Worth knowing

  • Freelancer Rate Calculator on Toolspire: hourly charge = desired take-home ÷ hours ÷ (1 − tax%).
  • ₹1,20,000 ÷ 1,000 hours at 0% tax = ₹120 an hour.
  • At 20%, the charge is ₹150, because one fifth of the invoice does not reach you.
  • Tax of 100% or more is rejected. Nothing would be left to gross up.

Dividing by what you keep

If a fifth of every invoice goes to tax or platform charges, you must invoice ₹150 to keep ₹120. The algebra is desired ÷ hours ÷ (1 − rate). It assumes the percent is a flat share of the invoice. Slabs, GST input credit and a retainer that is not hourly are outside it.

FAQ

Questions about Freelancer Rate Calculator

Where does Freelancer Rate Calculator run?

Freelancer Rate Calculator runs in this tab on Toolspire. What you type or drop in is not sent to us and is not stored on a server.

What hourly rate keeps ₹1,20,000 over 1,000 hours with no tax?

₹120.

What if 20% of the invoice disappears?

₹150 an hour. Eighty percent of 150 is 120.

Should GST be in the percent?

Only the part you do not get back. GST you collect and remit, with matching input credit, is not income and not a cost in this sketch.

What about unpaid leave?

Do not put those hours in the billable box. Fewer hours raise the rate, which is what unpaid time should do.

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