Calculate your freelance TJM: advice and examples

What is the TJM?

The TJM, or average daily rate, designates the price billed by a freelancer or consultant to a client for a day of work performed within the framework of an assignment. Whether you are a sole trader, a professional in wage portage, or an employee on assignment, the TJM is an essential reference unit for pricing a service based on the time spent on the project. This rate can be expressed excluding taxes (HT) or including all taxes (TTC), depending on the context and regulations applicable to your activity.

When structuring your revenue, the TJM corresponds to your average daily income gross, before deducting costs, social contributions, and taxes.

Why is it important to calculate it correctly?

A precise calculation of your TJM is essential to ensure the sustainability and profitability of your consulting or freelance activity. Indeed, a poorly evaluated daily rate can lead to financial difficulties: either you charge too low and fail to cover your costs, social contributions, or the time dedicated to managing your activity, or you set a price too high and risk losing assignments to competitors better positioned on the market price.

The TJM must also take into account non-billable periods, such as holidays, administration, prospecting, and inactive times that do not generate income as an independent. A good calculation of the TJM ensures a decent salary income, covers unforeseen calendar events, and maintains healthy management of your business.

Moreover, the TJM serves as a strategic positioning lever. Displaying a TJM aligned with your expertise, your experience, and the specificities of your sector enhances your credibility with clients and umbrella companies.

In the context of wage portage, the TJM remains a key indicator, even if the umbrella company handles part of the administration and social contributions. A coherent TJM optimizes your net compensation and avoids unpleasant surprises during the wage portage simulation or when calculating salary in freelance.

Beyond the financial aspects, the TJM is an indispensable strategic management tool for piloting your activity with peace of mind, regardless of your mode of operation.

Assessing your costs and expenses

To calculate a realistic and profitable TJM, it is essential to accurately estimate all of your costs and expenses. These costs include expenses related to your activity, such as rent and insurance for your professional premises, essential subscriptions (telephone, internet, software tools), as well as expenses related to communication, marketing, and administrative management.

Don't forget to include variable expenses, such as travel costs, meals, or accommodation when on client assignments. Additionally, there are compulsory social and tax contributions, as well as taxes, which depend on your status, whether it be a micro-enterprise, an umbrella company like Weepo, or a classic freelance activity.

By conducting this precise assessment, you can incorporate into your TJM all social contributions, taxes, and operating costs so that the billed amount covers all these expenses while ensuring a satisfactory salary income.

Determining the number of days worked per year

Another key element in the calculation of the TJM is estimating the actual number of days you worked over a year. As a freelancer or consultant, not every day is necessarily billable: you must consider holidays, periods without assignments, the time spent on prospecting, administrative management, as well as training or other non-billable activities. Generally, it is considered that an independent professional can charge between 180 and 220 days per year, depending on their sector of activity and their mode of operation (wage portage, micro-enterprise, etc.).

This estimate is important because it allows you to allocate your charges and your targeted annual salary over a realistic number of billable days. The lower this number, the higher your TJM must be to achieve your financial goals. Therefore, correctly defining your number of days worked ensures that your TJM takes into account not only your volume of activity but also the natural uncertainties related to your profession.

Analyzing the market and competition

To establish a relevant TJM, it is essential to analyze the market price practiced in your sector of activity and to know the rates of competitors offering similar services. This step allows you to position your offer in a realistic context and understand the financial expectations of potential clients. To do this, you can consult dedicated freelance platforms, professional networks, or industry studies to identify the common TJM ranges.

Setting a TJM too low can harm your credibility, while a TJM too high may exclude certain assignments. The key lies in finding a balance that values your expertise while remaining competitive.

Carefully consider your income and experience goals

Your TJM should also reflect your personal and professional financial goals. It is important to factor in the desired income while considering social contributions, non-billable days, as well as your level of experience and specialization. For instance, a junior consultant will generally charge a lower TJM than an experienced expert or a highly sought-after specialist, who can justifiably command a higher rate.

A TJM can range from €250 to over €1,200 depending on seniority and the complexity of assignments. Discover the different TJMs based on your profession: https://weepo.fr/portage-salarial-metiers

Defining a clear strategy based on your profile, skills, and positioning will allow you to adjust your TJM over time. Using a TJM simulator or a wage portage simulation can help you visualize the impact of your pricing choices on your revenue and your wage portage or net salary. This process gives you better control over your activity and the confidence needed to negotiate your assignments with your clients and umbrella companies.

Conclusion

To effectively calculate your TJM, it is essential to consider your professional costs, the number of billable days, and the rates practiced in the market. By setting a TJM that corresponds to your experience and income goals, you not only guarantee a satisfying salary in wage portage or freelance but also achieve balanced management of your activity.

To refine your calculation, do not hesitate to use a TJM simulator. This tool allows you to assess the impact of your choices and adjust your rates according to your sector of activity and the economic context.

Take the initiative today by accurately calculating your TJM. This will help secure your professional future and develop a sustainable activity.