How do I use the freelance hourly rate calculator?
- Enter your target annual income.
- Add yearly costs such as freelance permit, visa, insurance and software.
- Set billable hours per week and weeks off, then read your rate.
Why freelancers undercharge
Most people divide their old salary by 2,000 hours. But a salary comes with paid leave, a visa, insurance and a desk, and an employee is paid for every hour at work, not just billable ones. A freelance rate has to cover all of that.
The formula
Hourly rate = (target income + business costs) ÷ (billable hours per week × working weeks). Raise billable hours or lower costs to bring the rate down, or accept a lower income target.
Freelance hourly rate calculator: frequently asked questions
How many hours can a freelancer bill?
Many freelancers bill 20–30 hours a week. The rest goes on sales, admin, learning and unpaid revisions.
What costs should I include?
Freelance permit or licence, visa and Emirates ID, health insurance, co-working, software, equipment, accounting and marketing.
Do I need to charge VAT as a freelancer?
If your taxable supplies exceed AED 375,000 in 12 months you must register for VAT and charge 5%. Voluntary registration is possible from AED 187,500.
Should I charge hourly or per project?
Project pricing often earns more for clear scopes. Use your hourly rate to estimate the project, then price the value.
How many weeks off should I plan?
Include annual leave, public holidays and a buffer for sickness and quiet periods. Six to eight weeks is common.
Does this include corporate tax?
No. Natural persons doing business may need to register for corporate tax once turnover exceeds AED 1 million in a year. Get advice if you are near that level.
How often should I raise my rate?
Review it at least yearly, and whenever you are fully booked for several months.
Is the day rate just 8 × hourly?
Here it is. Many freelancers give a small discount for full-day bookings.
Are these calculations based on UAE rules?
Where a UAE rule applies (VAT, labour law, mortgage limits) the tool follows it and names the source. Rules change, so confirm important figures with the relevant authority.
Is the freelance hourly rate calculator free?
Yes. It is free with no sign-up and no usage limits for normal use.