How much will you earn per year?
Monthly salary: 0 kr.
Annual income: 0 kr.
Hours/year: 0
Disclaimer:
The hourly rate calculator here is solely a tool to help you get an idea of how to price yourself, and is not connected to your potential project employment and hourly rate for work through Factofly.
It's one of the most difficult disciplines as a freelancer: What should I charge per hour? If you set the price too low, you'll be working yourself to the bone without saving for the future. If you set it too high, you could easily lose the job.
Our hourly rate calculator can give you an idea of where to set your hourly rate. By taking your desired annual income, billable hours and your actual expenses as a starting point, we will find the hourly rate that will ensure you both make money and have peace of mind.
How to find your right hourly rate as a freelancer
Many people make the mistake of simply looking at what they were paid as an employee and dividing it by 160 hours (number of working hours in a month).
But as a freelancer, you are your own employer. This means that your hourly rate must cover much more than just your net salary.
When using the calculator, consider the following factors:
- Desired annual salary: The amount you want to have in your private account for consumption and fixed expenses before tax.
- Business expenses: Everything from software licenses and computer equipment to office space and insurance.
- Billable hours: Remember, you can't bill 37 hours a week. Time spent on administration, networking, and sales is “free” work that your billable time must fund.
A landmark – not a final truth
The hourly rate calculator here takes your ambition and bandwidth as a starting point, and then calculates backwards. The number you get is therefore not a definitive truth, but a suggestion for where you should be in order to reach your ambition.
Ultimately, of course, it is the market that determines what price you can take, but the exercise here is also one of the healthier ones.
For let's say you want to earn 1,000,000 kroner a year, which means you have to charge 1,100 kroner per hour, for example. Your price might be 500 kroner/hour right now, so what does it really take before you can more than double your hourly rate? Do you need to be better? Do you need to sell to another ICP or another niche? Do you need to wrap up someone else's service and sell it on? etc.
A healthy exercise that requires an honest conversation with yourself about the business.
A landmark – not a final truth
The hourly rate calculator here takes your ambition and bandwidth as a starting point, and then calculates backwards. The number you get is therefore not a definitive truth, but a suggestion for where you should be in order to reach your ambition.
Ultimately, of course, it is the market that determines what price you can take, but the exercise here is also one of the healthier ones.
For let's say you want to earn 1,000,000 kroner a year, which means you have to charge 1,100 kroner per hour, for example. Your price might be 500 kroner/hour right now, so what does it really take before you can more than double your hourly rate? Do you need to be better? Do you need to sell to another ICP or another niche? Do you need to wrap up someone else's service and sell it on? etc.
A healthy exercise that requires an honest conversation with yourself about the business.
How to find your right hourly rate as a freelancer
Many people make the mistake of simply looking at what they were paid as an employee and dividing it by 160 hours (number of working hours in a month).
But as a freelancer, you are your own employer. This means that your hourly rate must cover much more than just your net salary.
When using the calculator, consider the following factors:
- Desired annual salary: The amount you want to have in your private account for consumption and fixed expenses before tax.
- Business expenses: Everything from software licenses and computer equipment to office space and insurance.
- Billable hours: Remember, you can't bill 37 hours a week. Time spent on administration, networking, and sales is “free” work that your billable time must fund.
Why add a pension and buffer on top of your salary?
In our calculator, we have chosen to separate pension and rainy day allowance from your desired salary. We have done this for a very simple reason: to ensure your survival as a self-employed person.
Pension (Your future security)
As a self-employed person, you do not automatically receive a labour market pension. By adding, for example, 10% on top of your desired salary in the calculation, you ensure that your hourly rate is high enough that you can actually afford to pay into your savings without affecting your daily consumption.
Rainy weather allowance (Your professional buffer)
Freelance life fluctuates. There will be periods of illness, vacation, or fewer tasks. The rainy day allowance (also called a buffer) is the money your company saves during the good months so that you can still pay yourself during the quiet periods.
Why add a pension and buffer on top of your salary?
In our calculator, we have chosen to separate pension and rainy day allowance from your desired salary. We have done this for a very simple reason: to ensure your survival as a self-employed person.
Pension (Your future security)
As a self-employed person, you do not automatically receive a labour market pension. By adding, for example, 10% on top of your desired salary in the calculation, you ensure that your hourly rate is high enough that you can actually afford to pay into your savings without affecting your daily consumption.
Rainy weather allowance (Your professional buffer)
Freelance life fluctuates. There will be periods of illness, vacation, or fewer tasks. The rainy day allowance (also called a buffer) is the money your company saves during the good months so that you can still pay yourself during the quiet periods.
The difference between your salary and your freelance annual income
It can seem overwhelming when the calculator shows a freelance annual income that is significantly higher than your desired salary. But this is where the financial reality of being self-employed becomes clear:
- The salary is what you live for here and now.
- The annual income (turnover) is what your business must generate to cover your salary, your pension, your buffer, your vacation and your operating expenses.
When you know those numbers, you can go to the negotiating table with your customers with full confidence because you know exactly where your pain threshold is.
The difference between your salary and your freelance annual income
It can seem overwhelming when the calculator shows a freelance annual income that is significantly higher than your desired salary. But this is where the financial reality of being self-employed becomes clear:
- The salary is what you live for here and now.
- The annual income (turnover) is what your business must generate to cover your salary, your pension, your buffer, your vacation and your operating expenses.
When you know those numbers, you can go to the negotiating table with your customers with full confidence because you know exactly where your pain threshold is.
Factofly does the heavy lifting so you can focus on you
Factofly does the heavy lifting so you can focus on you
Fast
eddisplay
We pay your money directly to your account shortly after we receive it from your customer.
Insured while working
occupation
When you work on a task under our wings, we make sure to have you covered by our insurance.
Tax optimized income
We ensure that your expenses in connection with your work are included in your payroll.
Administration on autopilot
Factofly handles it all for you: collects the money, arranges VAT, tax, insurance and holiday pay.
Fast
eddisplay
We pay your money directly to your account shortly after we receive it from your customer.
When you work on a task under our wings, we make sure to have you covered by our insurance.
Tax optimized income
We ensure that your expenses in connection with your work are included in your payroll.
Administration on autopilot
Factofly handles it all for you: collects the money, arranges VAT, tax, insurance and holiday pay.
