Most freelance rates are set by one of two broken methods: copying what someone in a Facebook group charges, or dividing an old salary by 260. Both produce the same outcome — working more for less. The real maths takes five minutes.

The formula

(Target salary × 1.3) ÷ 180 = minimum day rate.

  • ×1.3 replaces what an employer silently paid: pension contributions, NI, equipment, software, insurance, training, sick days.
  • ÷180, not 260, because a freelance year contains holidays, admin, marketing, proposals, gaps between projects and the unpaid work of finding paid work. 180 billable days is a good year; plenty run at 150.

Want £45,000-employed-equivalent? £45,000 × 1.3 ÷ 180 = £325/day minimum. Charging £250 because it "sounds like a lot compared to my old salary" is a ~25% pay cut wearing a freedom costume.

Then adjust for what the maths can't see

  • Value pricing beats time pricing where stakes are visible. A rebrand that repositions a £2m business isn't worth "four weeks of days" — anchor to outcomes when the client's upside is large and legible.
  • Project prices beat day rates for defined scope — you keep the efficiency gains of being good at your job. Day rates make experience a punishment.
  • The VAT horizon: consumer-facing freelancers approaching £90k of turnover need a pricing strategy for the cliff — raising rates before registration softens the jump.

Raising prices without drama

  1. New clients first. Quote the new rate to every new enquiry from today. No announcement required — this is the zero-risk lane.
  2. Existing clients with notice: one short email, 4–6 weeks ahead, new rate stated plainly, no apology paragraph. "From 1 September my rate is £X" outperforms three paragraphs of justification.
  3. Expect ~zero attrition if you're good. Clients price switching costs too. The rare one who leaves over a fair increase was your lowest-margin work — that capacity refills at the new rate.
  4. Do it annually. Small regular increases beat a panicked 40% correction after three static years.

How you'll know it's working

Not by revenue alone — by profit per worked day, visible in decent books. FreeAgent (included in every package) shows income, costs and the tax picture live; we'll add the honest second opinion on whether the rate's still too low. Spoiler: it usually is.