Last updated 10 October 2026.
A US client asks for your day rate. Your rent, groceries and tax bill are in euros, pounds or Australian dollars. The tempting shortcut is to take the day rate you need at home, convert it at today’s exchange rate and quote that number in dollars. The trouble is that you will not be paid at today’s rate. You will be paid weeks later, at whatever rate applies when you convert, after fees. This guide shows a simple way to price a USD day rate that still covers your costs when the exchange rate moves against you. It uses a fictional freelancer, real European Central Bank reference rates and every step of the arithmetic.
This is general information about pricing, not financial, tax or legal advice. The exchange rates below are ECB reference rates published on or before 9 October 2026 and checked on 10 October 2026. Rates change every working day, so rerun the numbers before you quote.
This piece sits in the Earn section. It pairs with Getting paid in one country while you live in another (how the money reaches you) and Cleared amount on the invoice: USD ACH without a US bank (how to make sure the invoiced amount is the amount that arrives).
Why today’s exchange rate is the wrong anchor
Three gaps separate the rate you see when you quote from the money you can spend.
- Time. You quote now, invoice at the end of the month and get paid on the client’s terms. Each week in between is a week in which the dollar can weaken against your home currency.
- The rate you actually get. The ECB publishes its euro reference rates “for information purposes only” and says that “using the rates for transaction purposes is strongly discouraged”. Your bank or payment provider converts at its own rate and may add a fee.
- Receiving costs. How the client pays changes what lands. A domestic US transfer into US account details can be cheaper to receive than an international Swift payment (see the Wise example below). Our guide to the cleared amount on a USD invoice covers the invoice wording.
The first gap is the biggest, and recent data shows why. In the ECB’s 90-day reference-rate history, checked on 10 October 2026, the euro was worth USD 1.1206 on 9 October 2026. That was close to the lowest figure in the whole window, which runs from 13 July to 9 October 2026: the lowest was USD 1.1177, on 7 October 2026. The highest was USD 1.1699, on 21 August 2026. For someone who earns dollars and spends euros, a low EUR/USD number is good news: each dollar buys more euros. So a quote converted at the 9 October rate assumes the dollar stays close to its strongest point of the last three months. Within the same window the euro cost up to 4.4% more in dollars (1.1699 ÷ 1.1206 = 1.0440), so the same euro bills took 4.4% more dollars to cover.
The method in five steps
- Set an annual target in the currency you spend. Living costs, savings and business costs, plus whatever you set aside for tax and social contributions where you live.
- Count your billable days honestly. Start from about 260 weekdays a year. Take off holidays, public holidays and sick days. Then take off the share of time you spend on admin, sales and unpaid work.
- Work out your day rate in your home currency. Annual target ÷ billable days.
- Convert at a deliberately cautious rate, not today’s rate. Pick a dated window of reference rates (here, the ECB’s last 90 days) and use the rate in that window that was worst for you.
- Add conversion and receiving costs, then round up. Gross the figure up for the costs you expect, round to a number you are comfortable saying out loud, and set a date to review it.
Using the worst rate in a recent window is a rule of thumb, not a forecast. It does not say where the rate will go. It says that a move of that size has just happened, so your price should survive it.
Worked example: Maya in Valencia
Illustrative example. The person, costs and percentages are made up. The exchange rates are real ECB reference rates. Maya is a UX researcher who lives in Valencia, Spain, and pays her bills in euros. Most of her work comes from US software companies, which want a day rate in dollars.
| Assumption | Maya’s figure | Where it comes from |
|---|---|---|
| Living costs | EUR 3,000 a month = EUR 36,000 a year | Her own budget (illustrative) |
| Savings target | EUR 6,000 a year | Her own goal (illustrative) |
| Tax and social contributions set aside | 30% of profit | Her planning figure, agreed with her accountant. It is not a statement of Spanish tax rates. |
| Business costs | EUR 4,800 a year | Software, insurance, equipment, coworking (illustrative) |
| Days off | 25 holiday, 12 public holidays, 5 sick days | Her own plan (illustrative) |
| Billable share of working days | 80% | The other 20% goes on admin and finding work (illustrative) |
| EUR/USD on 9 October 2026 | 1.1206 | ECB reference rate, checked 10 October 2026 |
| Least favourable EUR/USD, 13 July to 9 October 2026 | 1.1699 (21 August 2026) | ECB 90-day history, checked 10 October 2026 |
| Conversion and receiving costs | 1% of the amount | A cautious planning figure. Check your own provider’s pricing on the day. |
Step 1: annual target. Maya needs EUR 36,000 + EUR 6,000 = EUR 42,000 after tax. If 30% of profit goes to tax and contributions, she needs a profit of EUR 42,000 ÷ 0.70 = EUR 60,000. Adding business costs, her revenue target is EUR 60,000 + EUR 4,800 = EUR 64,800.
Step 2: billable days. 260 − 25 − 12 − 5 = 218 working days. At 80% billable, 218 × 0.80 = 174.4, which she rounds down to 174 days.
Step 3: home-currency day rate. EUR 64,800 ÷ 174 = EUR 372.41 a day.
Step 4: cautious conversion. At the 9 October rate, EUR 372.41 × 1.1206 = USD 417.33. At the least favourable rate in the window, EUR 372.41 × 1.1699 = USD 435.69. The difference, about USD 18.36 a day, is her FX buffer.
Step 5: costs and rounding. To keep USD 435.69 after a 1% cost, she needs USD 435.69 ÷ 0.99 = USD 440.09. She rounds up and quotes USD 445 a day.
What the buffer does when the rate moves
Illustrative arithmetic. The table compares the shortcut (USD 417, today’s rate converted with nothing added) with Maya’s USD 445. Each row assumes 174 billable days and the 1% cost. The 1.1206 and 1.1699 rows are real ECB rates from the window. The 1.10, 1.14 and 1.20 rows are round numbers chosen to test the price. They are not forecasts.
| EUR/USD when Maya converts | USD 417 a day: euros kept per day | USD 417: a year vs EUR 64,800 target | USD 445 a day: euros kept per day | USD 445: a year vs EUR 64,800 target |
|---|---|---|---|---|
| 1.10 (test) | EUR 375.30 | EUR 65,302 (+502) | EUR 400.50 | EUR 69,687 (+4,887) |
| 1.1206 (9 Oct 2026) | EUR 368.40 | EUR 64,102 (−698) | EUR 393.14 | EUR 68,406 (+3,606) |
| 1.14 (test) | EUR 362.13 | EUR 63,011 (−1,789) | EUR 386.45 | EUR 67,242 (+2,442) |
| 1.1699 (21 Aug 2026) | EUR 352.88 | EUR 61,400 (−3,400) | EUR 376.57 | EUR 65,523 (+723) |
| 1.20 (test) | EUR 344.02 | EUR 59,860 (−4,940) | EUR 367.13 | EUR 63,880 (−920) |
How to read a row: euros kept per day = USD day rate ÷ EUR/USD × 0.99. For example, 445 ÷ 1.1699 × 0.99 = 376.57. The annual figure is that number × 174 days.
Two things stand out. First, the shortcut misses the target even at today’s rate, because it ignores conversion costs. Second, the buffered rate covers every rate seen in the last 90 days, with a small margin at the worst point. It does not cover everything. At 1.20 Maya would be EUR 920 short over a year. That is why the last step is a review date, not a promise that the number works forever.
Same method, costs in pounds or Australian dollars
The ECB quotes every rate against the euro, so a USD-per-pound or USD-per-Australian-dollar figure is a cross rate: the USD rate divided by the GBP or AUD rate on the same day. The table uses the same 90-day ECB window, checked on 10 October 2026.
| Costs in | USD per unit on 9 Oct 2026 | Least favourable for a USD earner, 13 Jul to 9 Oct 2026 | FX buffer |
|---|---|---|---|
| Euro (EUR) | 1.1206 | 1.1699 (21 Aug) | 4.4% |
| Pound (GBP) | 1.3220 (1.1206 ÷ 0.84763) | 1.3656 (21 Aug; 1.1699 ÷ 0.8567) | 3.3% |
| Australian dollar (AUD) | 0.6981 (1.1206 ÷ 1.6052) | 0.7225 (9 Sep; 1.1652 ÷ 1.6128) | 3.5% |
Illustrative examples. A designer in Manchester who needs GBP 320 a day would get USD 423.04 at the 9 October cross rate, USD 436.99 at the least favourable rate, and USD 441.41 after the same 1% cost. A developer in Brisbane who needs AUD 600 a day would get USD 418.86, then USD 433.50, then USD 437.88. Each would round up from there.
Notice that in all three currencies the 9 October rate was close to, but not at, the best point of the window for a dollar earner: the best days were 7 October for the euro and 2 October for the pound and the Australian dollar. That is the situation in which the shortcut is most dangerous: quoting from a strong-dollar day locks in a price that only works if the dollar stays strong.
Turning the number into terms a client will accept
A buffer only helps if the client agrees to the number and pays it in a predictable way. These points come from the arithmetic above, not from any law, so treat them as ideas to adapt, not legal wording.
- Quote in one currency and say for how long. “USD 445 per day, valid for engagements starting before 31 December 2026” tells the client when the price will be looked at again.
- Agree a review point tied to a public rate. For example, a review if the ECB EUR/USD reference rate stays above a named level for a month. Naming the source avoids arguments about whose rate counts.
- Shorten the gap between work and payment. Fewer days between invoice and payment means fewer days of exposure. Monthly invoicing on 14-day terms carries less risk than quarterly invoicing on 60-day terms.
- Make the receiving route cheap and clear. Put US receiving details on the invoice when the client can pay domestically, state the amount and currency, and say who pays transfer fees. Getting paid in one country while you live in another explains the routes. If the client also asks for tax paperwork, see W-8BEN for freelancers living abroad.
- Do not stack buffers. If the client agrees to pay in euros, the currency risk moves to them and the FX buffer is no longer needed. Keep the conversion-cost step only if you still convert.
Receiving dollars before you convert them
The buffer assumes you convert dollars when you need euros, not the moment they arrive. Holding a USD balance lets you pay USD costs (software subscriptions, for example) without converting twice and spread conversions over several days. It does not remove currency risk, and it is not an emergency fund.
A multi-currency payment account is one way to get US receiving details where your country of residence supports it. Wise is the example we use because its help pages are public. Its USD account details page, checked on 5 October 2026, said that ACH payments are generally free to receive (with exceptions for businesses in some countries) and showed a fee of 6.11 USD to receive a domestic wire or a Swift payment in USD. For a client who pays by Swift once a month, that is 6.11 × 12 = USD 73.32 a year, before any intermediary bank charges. Wise is a payment and e-money service, not a bank deposit. Its UK entity says its e-money services are not covered by the Financial Services Compensation Scheme.
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FAQ
Which exchange rate should I use to set a USD rate?
Use a public reference rate with a date on it, so you can repeat the calculation. This guide uses the ECB’s euro reference rates because they are published every working day with a 90-day history. The ECB says they are for information only, so treat them as a planning benchmark. The rate you are paid at will be your provider’s.
Is 90 days the right window?
It is a choice, not a rule. A longer window usually contains bigger swings and gives a bigger buffer. A shorter one gives a smaller buffer. Whatever you choose, write down the window and the date you checked it, and use the same method at each review.
Am I overcharging if the dollar stays strong?
In Maya’s example, if the rate stays at 1.1206 she keeps about EUR 3,606 more over a year than her target. That is the price of not running short if the dollar weakens again. You can share some of it with clients through the review clause, cutting the rate if the dollar strengthens as well as raising it if the dollar weakens.
Should I just invoice in my home currency?
If the client agrees, it removes your currency risk. It moves the risk and the conversion to the client, which some clients will not accept. If they want a USD price, the buffer method gives you one you can defend.
Does the 30% tax figure apply to me?
No. It is Maya’s own planning figure. Your tax and social contributions depend on where you are resident and how you work. Ask a local adviser for your number and put it in step 1.
What this article is not
It is not a currency forecast and not financial, tax or legal advice. It does not cover currency hedging products, platform pricing rules or employment contracts. Maya, the Manchester designer and the Brisbane developer are fictional, as are their costs, tax set-aside, billable days and the 1% cost figure. The exchange rates are ECB reference rates up to 9 October 2026, checked on 10 October 2026, and the Wise fee is from its help page, checked on 5 October 2026. Both will change, so check them again before you rely on them.
Sources
- European Central Bank: Euro foreign exchange reference rates. Rates for 9 October 2026 (USD 1.1206, GBP 0.84763, AUD 1.6052); “for information purposes only”; transaction use “strongly discouraged”. Last checked 10 October 2026.
- European Central Bank: 90-day reference-rate history (XML). Daily USD, GBP and AUD rates from 13 July to 9 October 2026, including USD 1.1699 and GBP 0.8567 on 21 August 2026, USD 1.1652 and AUD 1.6128 on 9 September 2026, and USD 1.1177 on 7 October 2026. Last checked 10 October 2026.
- Wise Help: How do I receive money with my USD account details. ACH generally free to receive; 6.11 USD to receive domestic wires and Swift in USD. Last checked 5 October 2026.
- Wise Help: How Wise Payments Ltd safeguards customer funds. E-money and payment services not subject to the FSCS. Last checked 5 October 2026.
- Bankrolled: Getting paid in one country while you live in another.
- Bankrolled: Cleared amount on the invoice, USD ACH without a US bank.
- Bankrolled: W-8BEN for freelancers living abroad.
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