Your Rate Floor is the lowest hourly rate at which your business pays you the income you need, covers its costs and sets money aside for tax. It is not the price you should charge; it is the line you should not go under. This free calculator is for freelancers, consultants, coaches and small agencies who sell their time and skills to clients and want a clear number before the next quote.

Find the lowest rate you can afford to charge.

Six numbers in, your Rate Floor out. Everything stays in your browser: nothing is saved or sent anywhere.

Your numbers

The fields start with the worked example from our kit. Replace them with your own figures.

Only changes the symbol. No conversion.
What you want to keep in a year, after business costs and tax.
The share of profit you set aside for income tax and social contributions. Ask a local accountant for your figure; 25 is only an example.
Software, equipment, insurance, accountant, training, phone, workspace, marketing, payment fees: everything the business pays for in a year.
52 minus holidays, public holidays and sick days.
Used for your day rate.
Hours you can actually charge for. Many solo sellers bill 20 to 25 hours a week, not 40, once sales, admin, email and learning are taken out.
Compare what you charge now with your floor. If you price by project, divide a typical fee by the hours it took.

Your Rate Floor

— per hour

— per day

How we got this

  • Profit needed before tax—
  • Revenue needed (profit + costs)—
  • Billable hours per year—
  • Rate Floor per hour (rounded up)—
  • Rate Floor per day—

This is the lowest rate that covers your income goal, costs and tax with nothing to spare. Your actual prices should sit above it, based on what your work is worth to clients.

Next step: set prices above your floor

The floor tells you where not to go. It doesn't tell you what your work is worth to a client, or how to raise your rates with the clients you already have. Raise Your Rates covers both: a short playbook, a fillable workbook and AI prompts to map what your work is worth, build three packages and step existing clients up to new prices.

See Raise Your Rates ($37) One-time price. Instant PDF download. Refund if a file is faulty or not as described.

An estimate for planning, not tax or financial advice. Ask a local accountant what to set aside where you live.

Questions about the Rate Floor

What is a rate floor?

The lowest hourly rate that covers three things: the income you want to take home, the costs your business pays each year and the money you need to set aside for tax. Below it, the business is paying you less than you decided you need. The calculation works backwards from your goal: profit needed, then revenue needed, then divided by the hours you can actually bill.

Why are billable hours less than 40 a week?

Because clients only pay for the hours spent on their work. Sales calls, proposals, invoicing, email, learning and admin all take time nobody pays for directly. Many solo sellers end up billing 20 to 25 hours in a working week. Counting those hours honestly is the main reason most people’s floor comes out higher than they expected.

Should I charge my floor?

No. The floor covers your needs with nothing to spare: no savings, no quiet months, no room for a client who pays late. Set your prices above it, based on what your work is worth to the client. If the floor is above what your clients pay today, the answer is usually to change what you sell or who you sell to, not to lower the number.

Will I lose clients if I raise my rates?

Some clients may say no, especially those who were paying far below your floor. Even so, the arithmetic above shows that a higher rate can leave you earning the same or more with less work. Giving notice, a clear reason and a simple choice of packages makes the conversation easier. Raise Your Rates walks through that conversation step by step, including which clients to move first.

Is this tax or financial advice?

No. The calculator uses a single tax reserve percentage to keep the maths clear. What you actually need to set aside depends on where you live and how your business is set up, so ask a local accountant for your figure and use it here.