How to work out your freelance day rate
Work out a freelance day rate from your costs, the income you need, and the days you can actually bill, with a worked example and a checklist for quoting it.
A day rate pays for more than the day.
A day rate is one price for one day of your work. It is simple for a client to understand and simple for you to invoice, which is why so much freelance work is priced this way: shoots, edits, design sprints, sound sessions, event coverage.
The catch is that a freelancer's day rate has to pay for everything an employer would otherwise cover. The days you bill pay for the days you spend finding work, doing your accounts, and waiting on replies. They also pay for your insurance, software, equipment, taxes, and time off. A rate that looks generous next to a salary can leave you short once those are counted.
So the useful question is not "what do other people charge?" but "what does a billable day need to earn for my year to work?" The answer is arithmetic, and it starts with your own numbers.
A day rate, worked from the costs up.
The figures below are made up to show the method. They are not suggested rates, and they are not tax advice. Replace every line with your own numbers.
| What the year has to cover | Amount |
|---|---|
| Pay you need to take homeRent, food, savings, everything personal | $60,000 |
| Taxes set asideAn estimate; ask an accountant for your real figure | $18,000 |
| Business costsInsurance, software, phone, accounting, marketing, travel you cannot bill | $12,000 |
| Income the year needs | $90,000 |
| Days you expect to bill | 120 |
| Day rate · USD | $750 |
The sum is income the year needs ÷ days you expect to bill: $90,000 ÷ 120 = $750 a day. Change either number and the rate moves. At 150 billable days the same year needs $600 a day; at 90 days it needs $1,000.
Be honest about how many days you can bill.
The number of billable days is where most day rates go wrong. A year has about 260 weekdays. Take out holidays, time off, and sick days and you may have 230. Then take out the days that earn nothing directly: quoting, emails, invoicing, portfolio work, travel, maintenance, and the gaps between jobs. Many freelancers find they bill between a third and two thirds of their working days.
If you have a year or two behind you, count the days you actually invoiced rather than guessing. If you are starting out, pick a careful number and check it against reality every few months.
Quote the rate so nobody is surprised later.
A day rate only works when both sides mean the same thing by "a day". When you quote, say:
- How long the day is, and what a half day costs if you offer one.
- What happens after that: an hourly rate for extra time, or a second day.
- What is included: prep, travel, editing, revisions, or none of them.
- What is separate: your equipment, expenses, and anything you hire in.
- The role. Many freelancers keep different rates for different jobs, such as shooting and editing.
Keep your time and your equipment as separate prices. If you bring your own gear, the kit fee guide shows how to price and present it. On productions that pay through a payroll company, the rate and the paperwork follow that production's process; the production pay guide covers keeping track of it.
Check the rate before you send it.
Use this checklist as you review. Your checks stay on this page until you leave or reload.
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From a rate to a paid invoice in Aestro.
Aestro is a private workspace for freelancers: projects, invoices, gear, and people in one place. This is how a day rate moves through it.
- Save the rate. Add each role and its rate under Day rates on your profile.
- Create the project. Add the client, the dates, Your role, and the Starting quote you gave them. Under How you're paid, choose Invoice the client or Payroll (W-2) to match the job.
- Invoice the days. Add a line item with the Unit set to Day, enter the number of days and the rate, and Aestro totals it. Extra hours go on their own line with the unit Hour.
- Send and record. Download PDF or Open email draft, then Record payment when the money arrives.
- Review the year. Finances adds up what you invoiced and what you spent. Use those totals the next time you run the sum above.
New to invoicing? Start with the freelance invoice guide, or open the demo to see a sample workspace with projects and invoices already filled in.
Save your day rate and bill with it.
Keep a rate for each role on your Aestro profile, add the days to an invoice as line items, and watch what your projects actually paid in Finances so next year's rate comes from real numbers.
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