When day rates make more sense
Day rates suit work where a client books your time in blocks, such as on-site contracting, photography, workshops and consulting. You avoid logging minutes, the client knows the cost up front, and a booked day cannot be fragmented into small pieces that leave you with unsellable gaps.
A discount can be a fair trade if the booking gives you certainty. If a client wants only one day here and there, you may reasonably charge full rate or more, because short engagements take more of your time to arrange.
The formulas
Day rate
Day rate = Hourly rate × Hours per day × (1 − Discount ÷ 100)
Weekly rate
Weekly rate = Day rate × Days per week
Yearly total
Yearly total = Weekly rate × Weeks per year
Worked example
A consultant charges $90 an hour, bills 8 hours a day, and offers a 10% discount for day bookings. A full-time contract would run 5 days a week for 46 weeks.
- Day rate: $90 × 8 × 0.90 = $648.00.
- Weekly rate: $648 × 5 = $3,240.00.
- Yearly total: $3,240 × 46 = $149,040.00.
- Monthly average: $149,040 ÷ 12 = $12,420.00.
Reading the annual figure
The yearly total assumes every listed week is fully booked. Few independents manage that, since selling, admin and gaps between contracts take up time. Treat it as a ceiling. The billable utilization calculator can help you estimate a more realistic figure, and the hourly rate calculator checks that your starting rate covers your income goal.
Frequently asked questions
Should I always discount a day rate?
No. A discount is something you can offer in exchange for a benefit like guaranteed work. If you bill a full day anyway and have plenty of demand, you can leave the field blank.
How many hours are in a billable day?
Agree on this in writing. Many contracts define a day as a set number of hours, and being clear prevents long days from eroding your rate.
How do I handle a half day?
Many freelancers charge somewhat more than half of the day rate, since a half-day booking often makes the rest of the day hard to sell. Set your policy and state it in your terms.
What about travel days?
Decide in advance. Common approaches include billing travel at a reduced rate or a full rate if it prevents other paid work. Put it in the contract.