How do I calculate my freelance billing rate?

Start with your desired annual net income, then add taxes, YEL contributions, business expenses, and account for holidays and sick days. Divide by your billable hours per year to get your hourly rate.

How many billable hours per year is realistic?

A typical freelancer bills 1,000–1,400 hours per year, accounting for holidays, administration, marketing, and non-billable work. 1,200 hours is a common target.

Should my billing rate include VAT?

In Finland, VAT (ALV) is typically added on top of your billing rate. The standard VAT rate is 25.5%. Your rate should cover your expenses and profit before VAT.

Billing Rate Calculator

Calculate the right hourly billing rate for your freelance or consulting work. Enter your target income and business costs to find your minimum rate.

Target net salary / mo: 3 000 €

1 000 €10 000 €

Tax rate (estimate): 30 %

VAT rate: 25.5 %

YEL income / year (€)

Other expenses / mo (accounting, insurance…)

Working hours / mo: 140 h

Billable share: 75 %

48,46 €

Hourly rate (excl. VAT)

60,81 €

Hourly rate (VAT 25.5 %)

387,64 €

Day rate (8 h, excl. VAT)

6 385,19 €

Invoicing / mo (incl. VAT)

Breakdown (monthly)

Target net income	3 000,00 €
Tax (30 %)	1 285,71 €
YEL contribution (24.10%)	502,08 €
Business expenses	300,00 €
Revenue needed (excl. VAT)	5 087,80 €
Revenue needed (VAT 25.5 %)	6 385,19 €

This calculator provides an estimate. The actual requirement depends on your business form, personal taxation, and collective agreement situation. The billable share reflects what portion of your time goes to billable work (the rest is sales, admin, training, etc.).

The billing rate calculator converts your desired salary into a billing rate that also covers side costs, taxes, and the expenses of running a business. It helps light entrepreneurs and freelancers price their work profitably.

How the calculator works and what it’s for▾

Why the billing rate is higher than a salary

A billing rate has to cover far more than the take-home pay: pension and social security contributions, taxes, any invoicing service fees, and lost income during holidays and sick days. That is why the hourly rate you bill is clearly higher than the net salary you aim for.

The calculator adds these cost items to your salary target and shows what you should charge the client.

What you enter and get

You enter the salary you want and an estimate of your working hours. The calculator converts these into a billing rate per hour or per day and shows how the costs affect the final price.

The result makes the gap between your salary target and the required billing rate clear.

Who it is for

The calculator is useful for light entrepreneurs, freelancers, and sole traders who price their services and want to make sure the rate covers all of their costs.

Pricing tips

Remember to account for non-billable hours such as sales, administration, and training, as well as a sufficient margin for unexpected expenses. Exact side-cost percentages and service fees vary by situation, so use the result as a starting point for your pricing.

🔄 Reviewed June 2026