United Kingdom version
How it works
Turn an explicit personal-income target into a billable rate while making nonbillable work and unpaid invoices visible.
This is the United Kingdom planning view, with monetary inputs and outputs in GBP. A currency label does not establish that a tax rate, construction price, coverage rule or legal limit has been verified locally. The inputs and limitations below describe the actual scope.
Input query strings and outputs
Use an input name in this page’s URL as ?name=value, and join additional inputs with &. Portable shared links may instead use the compact ?ac= state parameter.
Input query strings
8-
?desiredNet=Desired annual income after the entered effective tax assumptionMoney · Required · Default: 50,000
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?effectiveTax=Effective tax assumption on owner incomePercentage · Required · Default: 25
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?overhead=Annual deductible business overhead assumptionMoney · Required · Default: 10,000
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?reserve=Additional annual pretax reserve targetMoney · Required · Default: 5,000
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?weeks=Working weeks per yearNumber · Required · Default: 46
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?hours=Working hours per weekNumber · Required · Default: 40
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?billablePercent=Share of working hours that can be billedPercentage · Required · Default: 60
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?collectionPercent=Share of invoices expected to be collectedPercentage · Required · Default: 98
Outputs
4-
requiredRevenueTarget billed-and-collected revenueCurrency · Currency: GBP
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billableHoursAnnual billable hoursNumber
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hourlyRateRequired invoiced hourly rateCurrency · Primary output · Currency: GBP
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dayRateEquivalent eight-hour billable dayCurrency · Currency: GBP
Formula
hourly rate = (desired net/(1 − tax assumption) + overhead + pretax reserve) ÷ (working weeks × hours × billable share × collection share).
Calculations retain numeric precision internally. Displayed values are rounded for readability. Quantities that must be purchased as whole units are rounded up only where the formula explicitly requires it.
Read the inputs before calculating
- Desired annual income after the entered effective tax assumption: Enter the quantity described by the label.
- Effective tax assumption on owner income: Enter the quantity described by the label.
- Annual deductible business overhead assumption: Enter the quantity described by the label.
- Additional annual pretax reserve target: Enter the quantity described by the label.
- Working weeks per year: Enter the quantity described by the label.
- Working hours per week: Enter the quantity described by the label.
- Share of working hours that can be billed: Enter the quantity described by the label.
- Share of invoices expected to be collected: Enter the quantity described by the label.
Reproducible worked example
The following is a fictional arithmetic example, not a local quote, a verified claimant or a market forecast. Its values are included so the formula can be checked. The form does not automatically confirm any verification checkbox.
| Input | Example value |
|---|---|
| Desired annual income after the entered effective tax assumption | 50,000 |
| Effective tax assumption on owner income | 25 |
| Annual deductible business overhead assumption | 10,000 |
| Additional annual pretax reserve target | 5,000 |
| Working weeks per year | 46 |
| Working hours per week | 40 |
| Share of working hours that can be billed | 60 |
| Share of invoices expected to be collected | 98 |
| Output | Calculated result |
|---|---|
| Target billed-and-collected revenue | GBP 81,666.6667 |
| Annual billable hours | 1,104 |
| Required invoiced hourly rate | GBP 75.4831 |
| Equivalent eight-hour billable day | GBP 603.8647 |
Interpreting a changed assumption
Start with one complete scenario and change only one input when diagnosing a difference. Recheck units, the period of every rate, whether an amount is recurring or one-off, and whether a cost is already included elsewhere. A larger calculated benefit is not evidence that an assumption is more likely to occur.
Limitations
- Inputs are explicit management assumptions. This is not a valuation opinion, tax filing, employment-law assessment or investment recommendation.
- Effective tax is a user scenario, not marginal-tax computation. Sales tax/VAT is excluded from revenue. The reserve is pretax; a required after-tax reserve needs separate gross-up.
Frequently asked questions
What does this Freelance Rate result represent?
Turn an explicit personal-income target into a billable rate while making nonbillable work and unpaid invoices visible. It applies the displayed formula to your inputs; it does not infer omitted facts.
Are the starting amounts verified United Kingdom prices or legal rules?
No. Numeric defaults are illustrative unless an input or dated reference explicitly identifies a researched component. Currency is GBP; local quotes, eligibility and unsupported rules must be entered and verified separately.
What must I check before relying on the result?
Inputs are explicit management assumptions. This is not a valuation opinion, tax filing, employment-law assessment or investment recommendation.
Can I compare or share different assumptions?
Change one assumption at a time and use the browser-local project or share controls. A shared URL contains the encoded input values; do not include information you do not wish to disclose.
Sources and reference scope
- CFPB loan-estimate explanation — retrieved 2026-09-24. US cost components; the general amortization formula is stated separately.
- NIST unit conversion guidance — retrieved 2026-09-24. Unit definitions; geometry and financial arithmetic in these worksheets are explicitly stated.
These references support only their stated scope. They are not evidence that every local rule or price needed by the master expansion has been loaded.