A freelance rate is not an employee wage
An entrepreneur funds holiday, illness, administration, equipment, insurance and pension. An invoice rate therefore cannot be compared directly with a gross employee wage.
Estimate billable hours realistically
Subtract holidays, public holidays, training and gaps between projects. Sales, administration and travel may also be unpaid.
- real working weeks
- billable hours only
- annual business expenses
- 5–15% risk buffer
Minimum versus market rate
The calculator shows a financial minimum. Expertise, risk, urgency and client value may justify a higher market price.
Convert project price to an effective hourly rate
Divide project income by all time: preparation, travel, delivery, corrections and administration. Only then compare the effective rate with the financial minimum.
Working faster does not automatically justify a lower price. A client also pays for the result, timing, responsibility and guarantee.
- preparation
- travel
- delivery and corrections
- administration
When to recalculate the rate
Recalculate at least annually and after a material change in materials, insurance, transport, available time or responsibility. Put an indexation rule in longer contracts before signing.
Also test one unpaid week per quarter. If the margin disappears, you may need a higher price, deposit, shorter payment term or clearer scope boundaries.
Official sources
Rules were checked in Dutch Tax Administration publications. The official pages are in Dutch.