Hourly rate calculator
Tell us what you need to live on after tax, and we will work back to the hourly rate that supports it — including the hours you work but cannot invoice.
Hourly rate required
€75 per hour
- Equivalent day rate
- €597
- Annual revenue required
- €81,494
What a higher rate is really worth
Not every extra euro on your rate reaches you — tax and contributions take a share. The reverse is also true: above the contribution ceiling no further health or care contribution is charged, so more of each euro survives.
60%
Of every extra euro you keep
- Charging 10 EUR more per hour is worth, after tax
- €6,577 per year
Where your revenue goes
| Profit before contributions and tax | €69,494 |
| Health insurance | −€12,161 |
| Long-term care insurance | −€2,919 |
| Income tax | −€12,414 |
| Net income | €42,000 |
- Taxable income
- €54,900
- Of which deducted as insurance relief
- €14,594
Frequently asked questions
Why is my hourly rate so much higher than an employee wage per hour?
Because your rate has to carry holiday, illness, acquisition, bookkeeping, business expenses, the full health insurance contribution with no employer half, and your own retirement provision. An employee salary has most of that covered by the employer.
What billable share is realistic?
For most self-employed people it lands between 50 and 70 percent. Heavy acquisition or many small projects push it lower; long retainers push it higher. The calculator deliberately starts at 65 percent.
Are business expenses included in the rate?
Yes. The calculator finds the revenue that, after business expenses, contributions and tax, leaves your target net income, then divides it by your billable hours.
What about VAT?
Every figure is net of VAT. VAT is a pass-through item and does not belong in a rate calculation. The small-business rule under section 19 UStG is planned for a later version.
Assumptions
- Single assessment (Grundtarif) — joint assessment for married couples is not modelled.
- Statutory health insurance; private health insurance is not modelled.
- No church tax.
- No trade tax — the calculator assumes freelance (freiberuflich) status.
- All amounts are annual, in euro, net of VAT.