Calculate the hourly and project rate you need to charge as a freelancer to meet your income goals after taxes and expenses.
To calculate your freelance hourly rate, add your desired net income, business expenses, health insurance, and retirement contributions. Divide by (1 minus your combined tax rate) to get required gross revenue. Then divide by your annual billable hours (typically 1,000-1,400 for full-time freelancers). Most freelancers need to charge 2-3x what they earned hourly as an employee.
Freelancers must earn significantly more than their desired take-home pay because they cover their own taxes (self-employment tax of 15.3% plus income tax), health insurance, business expenses, and have non-billable hours. This calculator works backward from your desired net income to determine the gross revenue you need, then divides by your actual billable hours to find your minimum hourly rate.
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