Why salary ÷ 2,080 is wrong
A salary of 50,000 divided by 2,080 hours says about 24 an hour. But nobody pays you for holidays, public holidays, sick days, or the hours spent finding work, writing proposals and sending invoices. And the tax and the laptop come out of the same money.
Worth starts from what you want to keep, adds tax, costs and a buffer for slow months, then divides by the hours a client actually pays for. With 25 days off, 10 public holidays, 5 sick days and 65% of your working time billed, that's about 1,140 hours a year, not 2,080.
Questions
How do I calculate my freelance hourly rate?
Add up what you want to keep in a year, the tax on it, and your business costs. Add a buffer for slow months. Divide by the hours a client actually pays for: working days × hours a day × the share you can bill.
How many hours can a freelancer bill?
Most bill 50 to 70% of their working time, because finding work, admin and invoicing take the rest. After holidays and sick days that's usually 1,000 to 1,300 hours a year.
How do I work out a day rate?
Your hourly rate × the hours in your working day. Worth shows both. Contractors often round the day rate up to a clean number.
Should I charge hourly or per project?
Hourly when the scope is unclear, per project when it's clear. Price a project from the same rate: hours you expect × your rate, plus a margin for revisions.
What is a break-even rate?
The rate that covers your take-home, tax and costs with nothing left for slow months. Quote above it; Worth's buffer is the gap.