Plan your freelance pricing with complete clarity today. Track expenses, taxes, and nonbillable time easily. Download results, adjust assumptions, and protect your income always.
Use realistic costs and time assumptions. The calculator turns them into revenue targets and pricing guidance.
| Item | Value | Notes |
|---|---|---|
| Personal costs (monthly) | ₨ 250,000.00 | Baseline living expenses. |
| Business overhead (monthly) | ₨ 60,000.00 | Tools, software, marketing. |
| Benefits & insurance (monthly) | ₨ 25,000.00 | Coverage and subscriptions. |
| Savings & reserves (monthly) | ₨ 50,000.00 | Emergency and downtime fund. |
| Buffer | 10% | Protects against variability. |
| Utilization | 70% | Billable share of time. |
Base Annual Costs = 12 × (Personal + Overhead + Benefits + Savings)
Buffered Costs = Base Annual Costs × (1 + Buffer)
Billable Hours/Year = Hours/Week × Weeks/Year × Utilization
Required Revenue uses an effective model: taxes apply to the margin above costs, and profit is a share of revenue.
Required Revenue = (1 − Tax) × Buffered Costs ÷ ((1 − Tax) − Profit Margin)
If the denominator becomes zero or negative, reduce tax or profit assumptions.
Freelancers often underestimate fixed costs because expenses arrive in small monthly amounts. This calculator converts monthly living costs, overhead, benefits, and savings into an annual baseline. For example, ₨250,000 personal costs plus ₨60,000 overhead equals ₨3,720,000 per year before buffers. Adding benefits and reserves makes the target realistic, not optimistic. Divide by twelve to get a monthly revenue floor you must protect. Track quarterly revenue targets to avoid midyear pricing shocks.
Not every working hour is billable. Admin, proposals, revisions, learning, and networking consume time. Utilization is the billable share of total hours, commonly 50% to 75%. If you work 30 hours weekly for 46 weeks, you have 1,380 hours. At 70% utilization, billable hours drop to 966, which raises the required hourly rate sharply. Small changes in utilization often matter more than small expense cuts.
A buffer handles late invoices, project gaps, equipment failures, and seasonal demand. A 10% buffer turns ₨4,000,000 annual costs into ₨4,400,000 buffered costs. When you plan for volatility, you avoid panic discounting. Buffers also support longer payment terms, letting you choose healthier clients and deliver higher quality work. Pair the buffer with clear invoicing terms and faster collections.
Profit is not a luxury; it funds reinvestment, training, marketing, and business resilience. This model treats profit as a percentage of revenue and applies an effective tax rate on the margin above costs. If tax is 25% and desired profit is 15%, the denominator shrinks, meaning revenue must rise to satisfy both goals. Keep margins and taxes consistent with your market. Review these rates quarterly as your income and deductions change.
Once you have a required hourly rate, translate it into project pricing. Multiply the rate by estimated billable hours, then add risk for unclear scope. Compare the result with your current rate scenario to see coverage percentage and surplus or shortfall. Export results to share with partners, set quarterly targets, or justify a rate increase with confidence. Use the daily reference rate when negotiating short sprints or onsite work. Retainers smooth cash flow and increase predictable billable hours.
Utilization is the percentage of your working time you can invoice. It accounts for admin work, sales calls, revisions, learning, and breaks. Lower utilization reduces billable hours, so your required hourly rate rises to cover the same annual target.
Start with 5% to 15% if your income is stable, and 15% to 25% if projects are seasonal or payments are slow. The buffer is separate from savings; it absorbs short-term volatility and protects your pricing decisions.
Covering costs keeps you afloat, but profit funds reinvestment and growth. It supports better tools, training, marketing, and time off. A consistent margin also reduces reliance on overtime and helps you scale responsibly.
The calculator models taxes on the margin above your costs using an average rate. Higher tax assumptions reduce retained income, increasing required revenue. Use a conservative rate based on your historical payments and deductions.
Yes. Convert the required hourly rate into project pricing by multiplying by estimated billable hours and adding a risk allowance. For retainers, divide the required monthly revenue by expected monthly billable hours to set a minimum retainer.
Enter numbers in one currency consistently; the ratios remain valid. If you invoice in another currency, add a buffer for exchange fluctuations and fees. You can also export results and track targets in both currencies.
Important Note: All the Calculators listed in this site are for educational purpose only and we do not guarentee the accuracy of results. Please do consult with other sources as well.