How do I calculate my hourly rate as a freelancer?

Add up your target income, social security contributions, pension savings and business costs per year, add a margin for risk and profit, and divide by the hours you can actually bill.

How many hours can I bill per year?

Fewer than you think. From 52 weeks, deduct holidays, public holidays, sickness and training. Of the remaining time, sales, quotes, bookkeeping and admin are not billable. 1,000 to 1,300 billable hours per year are realistic for full-time work.

How much are AHV contributions for the self-employed?

AHV, IV and EO together amount to 10% of earned income, plus the administrative costs of the compensation office. A sliding scale applies to low incomes. The exact figures are in AHV/IV leaflet 2.02.

Do I need to add VAT to my hourly rate?

Only once your taxable supplies reach CHF 100,000 in turnover per year, or if you register voluntarily. Then 8.1% is added to the hourly rate; the calculator shows both values.

Is the calculated hourly rate in line with the market?

The calculator shows what you need to charge to reach your goal. Whether the market pays it depends on industry, specialisation and region. If the rate is well above the market, more billable hours or lower costs help more than a lower income target.

Hourly rate calculator for Swiss freelancers

In short

An hourly rate covers more than your salary: AHV/IV/EO of around 10%, pension savings, business costs and a mark-up for risk. You divide by billable hours, not by working time. At 42 hours per week, 5 weeks of holiday and a 65% billable share, around 1,200 hours remain per year. For CHF 100,000 income, CHF 10,000 pension savings and CHF 15,000 business costs, that is about CHF 123 per hour excluding VAT.

How the hourly rate calculator works

The calculator works in three steps.

Revenue target: target income plus AHV/IV/EO, plus pension savings and business costs, plus a mark-up for risk and profit.
Billable hours: 52 weeks of 5 days, less holidays, public holidays and absences. The remaining days times hours per day, times the billable share.
Hourly rate: revenue target divided by billable hours. The day rate corresponds to one full billed working day.

Example

Item	Value
Target income	CHF 100,000
AHV/IV/EO 10%	CHF 10,000
Pension savings	CHF 10,000
Business costs	CHF 15,000
Mark-up 10%	CHF 13,500
Revenue target	CHF 148,500
Working days (260 − 25 holiday − 9 public holidays − 5 absence)	221
Billable hours (221 × 8.4 × 65%)	1,207
Hourly rate excl. VAT	CHF 123.07

If the billable share rises from 65% to 75%, the required hourly rate in the example drops from CHF 123 to around CHF 107. Spending less time on admin is often more effective than a higher price.

Frequently asked questions

How do I calculate my hourly rate as a freelancer?: Add up your target income, social security contributions, pension savings and business costs per year, add a margin for risk and profit, and divide by the hours you can actually bill.
How many hours can I bill per year?: Fewer than you think. From 52 weeks, deduct holidays, public holidays, sickness and training. Of the remaining time, sales, quotes, bookkeeping and admin are not billable. 1,000 to 1,300 billable hours per year are realistic for full-time work.
How much are AHV contributions for the self-employed?: AHV, IV and EO together amount to 10% of earned income, plus the administrative costs of the compensation office. A sliding scale applies to low incomes. The exact figures are in AHV/IV leaflet 2.02.
Do I need to add VAT to my hourly rate?: Only once your taxable supplies reach CHF 100,000 in turnover per year, or if you register voluntarily. Then 8.1% is added to the hourly rate; the calculator shows both values.
Is the calculated hourly rate in line with the market?: The calculator shows what you need to charge to reach your goal. Whether the market pays it depends on industry, specialisation and region. If the rate is well above the market, more billable hours or lower costs help more than a lower income target.