Accountants Freelance Rate (Monthly) Calculator
Estimate the monthly revenue, day rate and hourly rate needed to meet your income target as a freelance accountant.
Overview
Use this calculator to estimate the monthly revenue a freelance accountant may need to invoice, then convert that target into a day rate and hourly rate. Add your personal income goal, regular business costs, planned tax and savings provision, and realistic billable capacity.
How it works
The calculator adds your target personal income to your monthly business costs. It then increases this amount to allow for the percentage of revenue you intend to set aside. Finally, it divides the required monthly revenue by your expected billable days and hours. Using realistic billable capacity is important because time spent on bookkeeping, client proposals, training, leave and business development is often not chargeable.
How to use this calculator
- 1Enter the monthly personal income you want the business to provide.
- 2Add your regular monthly business costs.
- 3Choose a percentage to set aside for tax, pension, savings or contingencies.
- 4Estimate the billable days and billable hours you can deliver each month.
- 5Review the monthly revenue target, day rate and hourly rate.
Example Calculation
Target monthly personal income
$4,000
Monthly business costs
$600
Tax and savings set-aside
25%
Billable days per month
16
Billable hours per day
7
Required monthly revenue
$6,133
With a £4,000 monthly income target, £600 of costs, a 25% set-aside and 16 billable seven-hour days, the required revenue is about £6,133 per month. That is roughly £383 per day or £54.76 per hour.
Frequently asked questions
What is a freelance accountant day rate?
A freelance accountant day rate is the amount charged for one billable working day. It should cover desired income, business costs, non-billable time and planned tax or savings provisions.
How many billable days should a freelance accountant use each month?
This depends on your workload and working pattern. Allow for administration, marketing, client meetings, training, holidays and sick leave, as these hours may not be chargeable.
Should I include tax in my freelance rate?
It is sensible to allow for tax and other planned payments when setting a rate. This calculator uses your chosen set-aside percentage rather than applying country-specific tax rules.
Does the calculator include VAT or sales tax?
No. The estimate focuses on revenue needed for income, costs and your set-aside. Consider whether indirect taxes need to be added to client invoices separately in your circumstances.
Why is my hourly rate higher than my employee hourly pay?
Freelance rates commonly need to cover business overheads, unpaid administration, leave, insurance, equipment, professional development and the uncertainty of variable client work.
Explore Related Calculators
Assumptions and warnings
Assumptions
- The calculation assumes your monthly income target is the amount you want available after regular business costs and planned set-asides.
- The tax and savings percentage is a user-selected provision rather than a calculation of your actual tax liability.
- All billable days and hours entered are assumed to be invoiced and paid within the month.
- The estimate excludes one-off expenses, bad debts, late payments, VAT or sales taxes, and financing costs unless you include them in business costs or your set-aside percentage.
Warnings
- This calculator provides a general estimate only and is not financial, tax or business advice.
- Actual tax, pension, insurance and business costs vary by location and individual circumstances.