Is Your Freelance Day Rate Keeping You Skint? Mine was!

If you’re a freelancer, you’ve likely had to chase invoices, stretching every pound, and wondering if your day rate is enough to keep you afloat. I know the feeling all too well—I’ve been there and at times still there, staring at unpaid invoices while the bills pile up, questioning whether this self-employed life is worth it. Spoiler: it is, but only if you’re charging enough to not just survive, but thrive.

The freelance life offers the dream of flexibility, autonomy, and being your own boss. But here’s the thing no one tells you—freelancing is also about being your own accountant, financial planner, and sometimes, debt collector. And if your day rate isn’t cutting it, the dream can quickly turn into a major stress.

Why Your Day Rate Matters More Than You Think

Let’s get real for a minute. Your day rate is more than just a number; it’s the foundation of your financial well-being. It determines whether you can pay your rent, keep the lights on, and maybe even have a little left over for that much-needed holiday. But setting your rate isn’t just about pulling a figure out of thin air. It’s about understanding your costs, your billable days, and your financial goals.

The Common Pitfalls

One of the biggest mistakes I made was underestimating my costs - all those things I need to pay for myself that an employer would cover. It’s easy to think, “I only need to cover my rent, food, and a few bills.” But what about taxes, insurance, pension contributions, and those unexpected expenses that always seem to pop up at the worst time?

Another trap is overestimating the number of billable days you have. When I first started, I thought I could work 250 days a year with no problem. Reality check: between holidays, sick days, and time spent on non-billable tasks like marketing, admin, and endless meetings, my actual billable days were far fewer.

Introducing Freelance Day Rate Calculator

At the beginning of this year, I was really tired of the same cycle of financial stress I have been living in for years - now full disclosure not all of it was because I wasn’t charging enough for my consultancy work, but a big part of it was not realising that I was seriously undercharging. So, I created a digital calculator in Excel to help me work out exactly what my personal and business expenses were and, realistically, what my billable days are across the year.

This is where my new digital tool comes in—a tool born out of necessity and a few too many sleepless nights. I created this tool to help freelancers like us calculate our true costs, figure out our realistic billable days, and determine the day rate we need to charge to not just get by, but to live the life we deserve.

With this tool, you can plug in your essential costs, including those wee ones we often forget, like software subscriptions, travel, and emergency savings. It also helps you account for non-billable time, giving you a clear picture of how many days you can actually work—and get paid for—each year. You can even calculate what you need to earn in the future if you want more holidays, work less week days etc.

Stop Undervaluing Yourself

I’m in debt, missed bill payments, and faced the anxiety of not knowing when—or if—my next invoice would be paid. It took me too long to realise that charging a fair rate isn’t just about covering costs; it’s about valuing yourself and your work.

Freelancing is hard enough without the constant stress of financial instability. By using this tool, you can take control of your finances, set a rate that reflects your true worth, and build a sustainable freelance career. Because you deserve more than just getting by—you deserve to thrive.

Take the Next Step

I’m on my own journey to turn around that financial uncertainty and stress. If you’re tired of feeling skint and want to take charge of your freelance finances, I invite you to try out my tool (currently £20). It’s designed with freelancers in mind to give you the clarity and confidence you need to set a rate that works for you—not against you.

Let’s stop the cycle of undercharging and start building a freelance life that not only pays the bills but also brings peace of mind.