The classic mistake is dividing a salary by 2,000 hours. Admin, proposals and finding clients are not billable — most freelancers bill 20–30 hours of a 45-hour week, and the rate has to carry taxes, expenses and unpaid time too.
Gross needed = (desired income + business expenses) ÷ (1 − tax rate). Hourly rate = gross ÷ (billable hours per week × working weeks per year). Every unpaid hour and every expense is carried by a billable one.
Far fewer than they work. Between admin, marketing, proposals and gaps between projects, 20–30 billable hours in a 45-hour week is typical — and 44–48 working weeks a year once holidays and dry spells are counted.
Use the hourly rate as your FLOOR for estimating, then quote per project where you can — clients prefer certainty and efficient work stops being penalised. The estimate generator on this site pairs well with that.
No — GST is charged on top of your fee and passed on, so it does not belong in the rate itself. The tax field here is for income tax on what you keep.
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