Freelance hourly rate in Germany: how to calculate

A simple rate formula

Start from the income you need after business costs, then divide by realistic billable hours:

Target rate ≈ (desired net income + annual costs + tax buffer) ÷ billable hours per year

• Annual costs: laptop, software, coworking, insurance, accounting, marketing
• Tax buffer: income tax / solidarity / church tax as applicable — ask your Steuerberater for a planning rate
• Billable hours: usually far below 40 × 52 (vacations, sales, admin)

Run the numbers in the Stundensatz-Rechner.

The billable-hours trap

Many freelancers assume 1,600–1,800 billable hours. In year one, 900–1,200 is common after acquisition, proposals, and unpaid admin. Underestimating non-billable time is the fastest way to undercharge.

Quote net — know how VAT appears on the invoice

B2B clients usually compare net rates. If you charge VAT, show net + VAT + gross on the invoice. Kleinunternehmer quote a single amount without VAT — see Kleinunternehmer and VAT on invoices.

Day rates and retainers

Agencies often buy Tagessätze (e.g. 8 × hourly). Retainers smooth cash flow but need clear scope caps. Whatever you choose, put the rate, unit, and period on every invoice — checklist.

German version: Stundensatz kalkulieren →