The mistake almost every new freelancer makes
Take the salary you'd like, divide it by working hours, and that's your rate? Not quite. As a freelancer, you pay your own expenses and tax, you don't get paid holidays, and a big chunk of your week goes to finding clients, invoicing, emails and learning, none of which a client pays for. The calculator builds all of that in and works backwards from what you want to take home.
Revenue needed = (take-home ÷ (1 − tax & savings share) + expenses) × 12
Billable hours = (52 − weeks off) × hours per week × billable share
Hourly rate = revenue needed ÷ billable hoursWorked example
From hourly to project pricing
Clients often prefer a fixed price. Estimate the hours honestly, multiply by your rate, then add 15–25% for revisions and communication. As you get faster, fixed pricing lets you keep the benefit of your efficiency instead of charging less for it.
Raising your rate over time
- Increase rates for new clients first, and for existing clients once a year with notice.
- Specialise: "Shopify developer for food brands" commands more than "web developer".
- Productise common work into packages with clear deliverables and prices.
- Track your actual billable share for a month. If it's lower than you assumed, your rate needs to rise.
Tax for Indian freelancers
Many professionals can use presumptive taxation, declaring 50% of receipts as profit. GST registration is required once receipts cross ₹20 lakh a year in most states. See the freelancer tax calculator and the advance tax calculator for quarterly payments.
Frequently asked questions
How much should a freelancer charge per hour in India?
Enough to cover your target income, expenses, tax, time off and unbillable hours. Enter your own numbers above; market rates vary widely by skill and experience.
What share of hours is billable?
Often 50–70% for established freelancers. New freelancers who spend more time finding clients may be lower.
Should I charge per hour or per project?
Per project usually rewards expertise and speed. Use your hourly rate to estimate a project price, then add a buffer.