Work backwards from the income you actually want. This tool turns your target take-home pay, overhead, and time off into an hourly number — with a built-in cushion for income tax, self-employment tax, and slower months. Built for freelancers in the US and worldwide.
The amount you want left over each year after covering your own living costs — before income tax comes off.
Everything it costs to keep the business running: software, insurance, a bookkeeper, gear — whatever you pay for out of pocket.
Not the hours you work — the hours a client pays for. Quotes, admin, and prospecting eat into the difference.
Every week you don't plan to invoice: holidays, sick days, slow stretches you take off on purpose.
Extra room on top of the bare minimum, so a slow month or a tax bill doesn't sink you.
Recalculates the moment you change a number.
Fill in the fields on the left to see your rate.
Fill in the fields on the left to see your rate.
Try a few combinations — small changes to hours or time off move the rate more than you'd expect.
🛡 Why the two numbers differ
The bare-minimum rate only covers your target income and costs — no room to breathe. The recommended rate adds your safety margin on top, which is the one to actually charge. When you're ready, put it on paper with our free Invoice Generator.
There isn't one fair number — it depends on what you need to earn and how many hours you can actually sell. Start from your target income, layer on business costs and a margin for taxes, then spread that total across the hours you expect to bill in a year. Because US freelancers owe self-employment tax on top of income tax, make sure your margin accounts for it. That's exactly what the calculator above works out for you.
Many independent contractors set aside 25–35% of what they bill for federal income tax plus the 15.3% self-employment tax (Social Security and Medicare), paid quarterly as estimated taxes. Transfer that share to a separate account with every invoice so tax season has no surprises.
Yes — as a freelancer you're covering both without an employer match. Fold those costs into your monthly business costs or bump up your safety margin so the rate this calculator gives you actually accounts for them.
Most freelancers land somewhere between 25% and 35%, depending on how unpredictable their workload is. It should cover income tax, self-employment tax, and unpaid time — treat it as insurance, not as extra profit you're banking on.
Got your rate? Start billing at it.
InvoiceCast lets you build the invoice, save the client, email it, and see when it's been paid — all without leaving the app.
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