Freelance hourly rate calculator
Freelancers underprice because they divide a salary by 40 hours. Enter your target income, costs, tax share and real billable hours to see the rate that works.
- The figures behind it · Billable share of a week
- about 60 %
- Weeks off (leave, sick, public holidays)
- 6 or more
- Formula
- (income + costs) ÷ (1 − tax) ÷ hours
How the rate is built
Start from what you need to keep and work up to what you must invoice.
- Revenue needed
- Target net income plus business costs, grossed up for tax and contributions: dividing by (1 − tax share) gives the revenue that leaves the net you want.
- Billable hours
- Hours you can invoice per week times the weeks you work. Admin, marketing, quoting and training are unpaid; 25 of 40 hours is a realistic ratio.
- Rate
- Revenue needed divided by billable hours. The day rate is eight of those hours.
Rule set 2026.1, last checked on October 12, 2026.
The result is an estimate based on the statutory rules. Your contract, collective agreement or tax code may change the figures. It is not tax or legal advice.
Frequently asked questions
What hourly rate replaces an AED 15,000 salary?
- Start from the income you want to keep. AED 15,000 a month, AED 1,000 of costs, no income tax and 1,150 billable hours give AED 16,000 × 12 ÷ 1,150, about AED 167 an hour or AED 1,335 a day. That replaces roughly an AED 15,000 salary once gratuity, insurance and leave the employer used to carry are counted.
What tax share should I enter?
- There is no personal income tax in the UAE, so zero is right for most freelancers. Add the share that goes to your freelance permit, licence renewals and health insurance if you want them priced into the rate.
Should I charge per hour or per day?
- Clients buying blocks of time expect day rates; projects with a defined scope are better priced fixed. The calculator gives both the hourly and the eight-hour day rate.
What next?
Know what you are worth? Browse the latest jobs and compare offers with your figures in hand.
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