Charging too little is one of the most common mistakes new freelancers make. But what is a realistic rate? And how do you calculate it? This guide explains everything step by step, with a free calculator.
Charging too little is one of the most common mistakes new freelancers make. You think: if I charge less than my competition, I will get more clients. But soon you find yourself working long hours for an income that barely covers your costs. Here is how to calculate a realistic hourly rate.
When you are an employee, your employer pays your holiday pay, health insurance, pension, sick leave and more. As a freelancer, all of these come out of your hourly rate. On top of that, you also need to cover:
Hourly rate = (desired net income + costs) ÷ billable hours × 1.15 (buffer)
What do you want to take home per year? Start with what you currently earn as an employee and add 20-30% to cover the benefits you are now responsible for yourself.
Think of: accountant fees (€600-1,200/year), liability insurance (€200-400/year), software subscriptions (€1,200-2,400/year), professional training, and any equipment costs.
A year has 52 weeks × 40 hours = 2,080 hours. But you cannot bill all of them:
Realistic billable hours: approximately 1,100-1,300 hours per year
Add 15-20% for unexpected costs and the risk of gaps between projects.
This is your minimum rate. Your market position, expertise and experience determine what you can actually charge.
Average freelance rates vary widely by field:
Research platforms like Malt, Upwork and LinkedIn to see what others in your field charge.
Want to calculate your rate without doing the math manually? Use our free [hourly rate calculator for freelancers](https://askdirect.ai/zzp/uurtarief). Enter your desired income, costs, vacation days and working hours — the calculator does the rest.
Your hourly rate is the foundation of your freelance business. Calculate it carefully, charge what you are worth, and adjust it as you gain experience and build your reputation. Visit our [Freelance Toolkit](https://askdirect.ai/zzp) for all the tools you need.
📌 This article provides general guidelines. Your individual situation may differ. Consult an accountant to help you calculate your rates and tax obligations.