Most freelancers set their hourly rate like this: take the salary they want, divide by 2,080 hours. That gives $48/hour for a $100,000 target. There's a problem with that number — 2,080 assumes 52 weeks × 40 hours, every single weekday of the year, with no holidays, no vacation, no sick days, and no admin time. Nobody works 2,080 billable hours. The realistic number is closer to 1,440–1,500, and that changes everything about how you should price your work.
The Math Most Freelancers Get Wrong
Here's the breakdown for a US-based freelancer in 2026:
- Total weekdays in 2026: 261
- Minus 11 federal holidays: 250 working days
- Minus 15 vacation days: 235 days
- Minus 10 sick/personal days: 225 days
- Minus ~20% non-billable time (admin, invoicing, marketing, proposals): 180 billable days
180 billable days × 8 hours = 1,440 billable hours. Now compare the rate calculation both ways:
| Target Income | ÷ 2,080 hours | ÷ 1,440 hours |
|---|---|---|
| $50,000 | $24/hr | $35/hr |
| $75,000 | $36/hr | $52/hr |
| $100,000 | $48/hr | $69/hr |
| $150,000 | $72/hr | $104/hr |
If you've been using the 2,080 figure, you've likely been undercharging by around 30%.
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Open Salary Calculator →How Working Days Vary by Country
If you work with international clients, the number of working days isn't the same everywhere: the United States has about 250 working days a year (11 holidays), the United Kingdom 252 (8 holidays), Australia 251 (8 holidays), Canada 250 (10 holidays), India 252 (9+ national and state holidays), the Philippines 248 (14 holidays), and South Africa 249 (12 holidays). This matters when setting project timelines — a "2-week deadline" in July means something different for a UK client (who works July 4th) than for a US one.
The Months That Bite
Not every month gives you the same number of billable days. In the US, March, April, July, and December are the best months for billing at 22 business days each. November is the worst, at only 18 business days due to Thanksgiving and Veterans Day. If you charge by the day or by monthly project milestones, adjust your rate for shorter months, front-load work into longer ones, or set client expectations upfront about holiday-heavy periods.
How to Calculate Your Real Rate
- Decide your target annual income (what you'd want as a salary).
- Add roughly 30% for self-employment tax, health insurance, and retirement — an employer would normally cover these. $100,000 becomes $130,000.
- Divide by your realistic billable hours (~1,440 for a US freelancer). That's about $90/hour.
- Round up — unexpected non-billable time always eats into the schedule.
For a $100,000 target lifestyle, that's roughly $90–100/hour, not the $48 you'd get from dividing by 2,080.
Daily Rate vs Hourly Rate
Some freelancers and consultants charge daily rates instead: daily rate = hourly rate × 8 hours. But a daily rate should be based on actual working days in the project period, not calendar days. A "one-month project" starting in November has 18 working days; the same project starting in March has 22 — a 22% difference in available time. Check the exact business-day count for the project window before scoping, to avoid the "why is this project behind schedule?" conversation later.
Frequently Asked Questions
Why is dividing my target income by 2,080 hours wrong?
2,080 hours assumes 52 weeks times 40 hours with zero holidays, vacation, sick days, or non-billable admin time. Realistic billable hours for a freelancer are closer to 1,440-1,500 per year, so dividing by 2,080 undercharges by roughly 30%.
How many billable hours does a freelancer actually have per year?
After subtracting weekends, public holidays, vacation, sick days, and non-billable admin time, a US-based freelancer typically has around 1,440-1,500 realistically billable hours per year, not the 2,080 theoretical maximum.
Which months have the fewest billable days?
In the US, November is the worst month with only about 18 business days due to Veterans Day and Thanksgiving. February is also short at around 19 days. March, April, July, and December typically have the most at 22 business days each.
How should I price international projects with clients in other countries?
Check the working-day count for your client's country, not just your own — public holidays differ by country, so a project window that looks like 10 business days to you might be 8 or 12 for your client.
Should I charge a daily rate or hourly rate as a freelancer?
Either works, but base a daily rate on actual working days in the project window rather than calendar days — a project starting in November has notably fewer working days than the same project starting in March.