Freelance PTO & Time-Off Rate Calculator
W-2 employees get paid vacation, sick days, and holidays built into their salary. Freelancers don't — every day off is unpaid unless you build its cost into your rate ahead of time. This calculator shows exactly how much markup you need on your billable rate to self-fund the time off you actually want to take.
How to use this tool
- Enter your current or target hourly (or day) rate and billable days per year.
- Enter how many paid-equivalent vacation days, sick days, and holidays you want to take.
- See the rate markup needed to cover that time off, plus your adjusted rate and per-day savings alternative.
- Use the action buttons below to download, print, or reset.
PTO & Time-Off Rate Calculator
Your Rate
Your current or target hourly rate.
Used to convert your hourly rate into a day rate.
Days you actually invoice clients each year, not counting time off.
Paid-Equivalent Time Off
Days you want to take off and still get paid for.
Estimated unplanned sick days per year.
Federal, religious, or personal holidays you observe.
Your Rate Markup for Time Off
Rate Increase Needed
12.5%
$75.00/hr → $84.38/hr
Total Paid-Equivalent Days Off
25 days
Current Day Rate
$450.00
Adjusted Day Rate
$506.25
Extra Per Billable Day (markup)
$56.25
Or: Save This Much Per Billable Day Instead
$56.25
Value of Your Time Off
$11,250.00
Current Annual Income (no markup)
$90,000.00
Annual Income With Markup
$101,250.00
To take 25 paid-equivalent days off a year, raise your rate by 12.5% (from $75.00 to $84.38 per hour), or keep your rate as-is and set aside $56.25 per billable day instead.
PTO & Time-Off Rate Calculator FAQ
How is the rate markup calculated?
The markup spreads the value of your unpaid days off across the days you actually bill. Markup % equals total days off divided by billable days per year. Raising your rate by that percentage lets you earn the same annual income as if every day off were paid.
Should I raise my rate or save separately for time off?
Both reach the same number. Raising your rate bakes the cost of time off into every invoice automatically. Saving a fixed amount per billable day works if you prefer to keep quoted rates unchanged and set aside the difference yourself.
What counts as a billable day per year?
Billable days are the days you actually invoice clients, after subtracting weekends, admin time, marketing, and unpaid downtime. Most freelancers bill far fewer days than the 260 weekdays in a year. See our Hourly Rate Calculator Guide for help estimating this.
Does this account for sick days I cannot predict?
Enter your best estimate based on past years. Building in a buffer for a few unplanned sick days is safer than assuming you will never get sick.
Next step
Once you've finished here, keep the momentum going with one of these.
Break-Even Calculator
Find the minimum revenue needed to cover your costs.
Invoice Generator
Create professional invoices at your calculated rate.
Budget Planner
Plan monthly budgets for irregular freelance income.
Margin Calculator
Check if your hourly rate delivers the margin you expect.
Percentage Calculator
Calculate tax, discount, and fee percentages quickly.
Frequently Asked Questions
Why do freelancers need to build time off into their rate?
Unlike W-2 employees, freelancers have no employer funding vacation, sick leave, or holidays. If you don't raise your rate (or save proactively) to cover those unpaid days, taking time off directly cuts your annual income.