Comprehensive Calculator Guide
This calculator answers every freelancer’s question: what hourly rate reaches the income I want? Wanting SAR 15,000 a month with SAR 2,000 of business costs, 25 billable hours a week, 6 weeks off and a 10% safety margin means charging about SAR 197 an hour, SAR 1,577 a day. It allows for unpaid holidays and admin time.
Why freelance rates run higher, and the Saudi rules
Employees are paid for 52 weeks and their employer covers equipment and insurance; freelancers cover it all and are paid only for billable hours. So the calculator adds costs to the income you want, divides by realistic billable hours after time off, and adds a margin for quiet months.
In Saudi Arabia, the freelance permit from the Freelance platform gives legal standing. Above SAR 375,000 of taxable revenue a year, VAT registration with ZATCA is mandatory, adding 15% to invoices.
How to Use
- Enter the monthly income you want and your monthly business costs.
- Enter billable hours a week, weeks off and the safety margin.
- Press “Work out my rate” to see the hourly and day rate and the yearly revenue needed.
Formula Used
Revenue needed = (income + costs) × 12 ÷ (1 − margin) | Rate = revenue ÷ (weekly hours × (52 − weeks off))
Practical Examples
- Example 1
- 15,000 + 2,000 costs, 25 h/week, 6 weeks off, 10%: SAR 226,667 ÷ 1,150 h = SAR 197/h.
- Example 2
- 10,000, no costs, 30 h/week: SAR 160,000 ÷ 1,380 h ≈ SAR 116/h.
Important Tips
- Review your rate yearly, raising it for new clients first.
Common Mistakes to Avoid
- Dividing an old salary by 160 hours a month.
Frequently Asked Questions
- How much should I charge per hour as a freelancer?
- Income plus yearly costs, divided by realistic billable hours, plus a margin.
- How many billable hours do freelancers work?
- Often 20–30 a week; the rest goes on marketing and admin.
- When must a freelancer register for VAT in Saudi Arabia?
- Above SAR 375,000 of taxable revenue a year.