How does the rate calculator work?
Many freelancers calculate their hourly rate by dividing their desired monthly income by working hours. This almost always produces a rate that's too low — because taxes, health insurance, business expenses and non-billable days aren't factored in. Freiberechner works differently. You enter your target net income, and the calculator works backwards: what annual revenue is needed so that exactly this amount remains after all deductions? That revenue is then divided by your actual billable days to produce a day rate and hourly rate.
Example: A freelancer in Germany targeting €3,000 net per month needs to charge around €58/hour — assuming 180 billable days, 6 working hours per day, and statutory health insurance. Most freelancers significantly underestimate this figure.
How do I calculate my hourly rate? →How is income tax calculated?
The calculation follows the official formula from §32a of the German Income Tax Act (EStG) for assessment year 2026. The German income tax system is progressive — the higher the taxable income, the higher the rate. No income tax is owed up to the basic allowance of €12,348. Above that, the rate rises to 42% (from €69,879) and 45% (from €277,826). Important for freelancers: statutory health and long-term care insurance contributions are deductible under §10(1)(3) EStG, reducing taxable income.
What does health insurance cost for freelancers?
Self-employed people with voluntary statutory health insurance pay the full contribution themselves. The standard rate in 2026 is 14.6%, plus an average additional rate of 2.9%. On a monthly profit of €4,000, that's around €788/month for health insurance alone. A minimum assessment base of €1,318.33/month applies — even lower earners pay contributions based on this floor.
What is the Künstlersozialkasse (KSK)?
Self-employed artists and publicists — including designers, copywriters, journalists and musicians — are mandatorily insured through the Künstlersozialkasse. KSK members pay only half the standard contribution rates. The other half is funded through a levy on clients and a federal subsidy — economically equivalent to an employer's contribution.
