What Hourly Rate Do You Need as a Freelancer?

Work backwards from your target net income to the required day and hourly rate.

Software, hardware, office, insurance, tax advisor, training

Sales, admin, proposals

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Your Calculation Rate

Hourly Rate
€68
Day Rate
€543
Required Annual Revenue (Fees)
€90,000
Billable Days / Year
165.6

Where the Revenue Goes

Target Net / Year
€48,000
Estimated Taxes & Contributions
€32,000
Business Costs / Year
€10,000

Important: The contribution rate is a flat estimate. Actual income tax is progressive (§32a EStG German Income Tax Act); health and care insurance depend on your insurance status (voluntary statutory vs. private). This is not tax advice. VAT (19 %) is paid on top by the client — it is a pass-through item and NOT part of the net hourly rate calculated here (a common mistake). The calculated rate is a costing basis, not a market price: the rate you can actually charge depends on market, skill and project.