# Calculate my freelance rate from my income goal

Works back from your target income, real billable hours, and costs to a day rate, project price, and minimum.

- Topic: Finance & Accounting
- Framework: Chain-of-Thought
- Level: Standard
- Tags: Finance, Plan, Fill-in Template, Step-by-step
- Source: https://www.thinkwithprompt.com/prompts/calculate-my-freelance-rate-from-my-income-goal

## Prompt

```text
Help me work out what to charge as a freelancer, starting from what I need to earn.

**Target take-home income per year:** [AMOUNT]
**Business costs per year:** [software, equipment, insurance, accountant, coworking, training]
**Benefits I now pay myself:** [health insurance, retirement, paid time off]
**Weeks I plan to work per year:** [e.g. 46]
**Hours per week I can work:** [TOTAL]
**Location for tax purposes:** [COUNTRY / STATE]
**Typical project:** [WHAT I DELIVER, and roughly how long it takes]
**Previous step (optional):** [PASTE my niche and positioning, so pricing matches the clients I'm targeting]

Do this:
1. Estimate billable hours realistically: subtract time for sales, admin, and gaps between projects (assume 50-70% of working time is billable unless I say otherwise), and explain the assumption.
2. Calculate the revenue needed: take-home + costs + benefits + an estimated tax set-aside (mark the tax rate [CONFIRM]).
3. Turn that into an hourly floor, a day rate, and a price for my typical project.
4. Show 3 pricing options for that project (hourly, fixed fee, monthly retainer) with pros and cons for my niche.
5. Set a walk-away minimum and explain how to raise rates for new clients over time.

Show the math step by step in a table. This is general information; confirm tax and insurance figures with an accountant or local professional.
```

## What to fill in

- AMOUNT
- health insurance, retirement, paid time off
- e.g. 46
- TOTAL
- COUNTRY / STATE
- WHAT I DELIVER, and roughly how long it takes
- CONFIRM

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