Accountants Freelance Rate (Daily) Calculator
Estimate the daily rate an independent accountant may need to charge to cover target earnings, business costs, billable days and a profit margin.
Overview
Use this freelance accountant daily rate calculator to estimate a charge-out rate based on your target annual earnings, operating costs, realistic billable days and a margin for profit or contingency. It can also show the equivalent hourly rate for comparison.
How it works
The calculator first adds your target earnings to annual business costs. It then applies your chosen profit and contingency margin to create an annual revenue target. Dividing that target by the number of billable days gives the recommended daily rate. The hourly equivalent is calculated by dividing the daily rate by the billable hours in a standard day.
How to use this calculator
- 1Enter the annual earnings you want your business to provide.
- 2Add your estimated yearly business overheads.
- 3Choose the number of days you expect to invoice clients during the year.
- 4Set a profit and contingency margin.
- 5Review the suggested daily and hourly rates, then adjust for your market and engagement scope.
Example Calculation
Target annual earnings
$60,000
Annual business costs
$12,000
Billable days per year
200
Profit and contingency margin
10%
Billable hours per day
7.5
Recommended daily rate
$396
With target earnings of 60,000, costs of 12,000, 200 billable days and a 10% margin, the estimated daily rate is 396, or about 52.80 per hour for a 7.5-hour day.
Frequently asked questions
How do I calculate my freelance accountant daily rate?
Add your target annual earnings and annual business costs, apply a suitable contingency or profit margin, then divide the result by the billable days you expect to work.
How many billable days should a freelance accountant use?
This depends on holidays, marketing, professional development, administration and expected gaps between assignments. Many freelancers use fewer than the total working days in a year to allow for non-billable time.
Should I include VAT in my daily rate?
This calculator shows a rate before VAT or sales tax. If you are required to charge VAT or a similar tax, it is generally added to invoices separately where applicable.
What business costs should I include?
Consider accounting and practice software, professional indemnity insurance, memberships, training, equipment, marketing, travel, office costs and subcontractor costs that are not billed separately.
Why add a profit or contingency margin?
A margin can help account for unexpected costs, unpaid time, late payment risk, investment in the business and the fact that not every working day will be billable.
Is the suggested rate the right market rate?
It is a revenue-based starting point. Compare it with rates for your experience, specialism, location, client type, responsibilities and the value delivered on each engagement.
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Assumptions and warnings
Assumptions
- The target annual earnings figure is treated as an amount the business needs to generate before personal income taxes.
- Annual business costs are spread evenly across all billable days.
- The selected margin is added to cover profit, contingency and business risk.
- The calculation excludes VAT or sales tax, payment processing fees not included in costs, and client-specific pricing factors.
- Results are estimates and actual charge-out rates depend on skills, market demand, scope and contract terms.
Warnings
- This calculator provides a business planning estimate only and is not financial, tax or accounting advice.
- Check tax, VAT, employment-status and contractual obligations that apply in your location before setting rates.