✦ 10k+ freelancers trust this✓ 2026 tax tables

Design your
ideal freelance
life — not just a rate.

This isn't a rate calculator. It's a lifestyle designer. Tell us the life you want — income, hours, time off — and we'll tell you exactly what to charge to make it real.

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Work 25h/wk · 6 wks off1,150 billable hrs/yr

Quick Start Presets

Your Lifestyle

Income · Time · Freedom
/yr

$100,000/yr · $164/hr → $1,312/day

hrs/wk

$25/mo · $300/yr

wks

$46/mo · $552/yr

Costs & Safety

Taxes · Benefits · Buffer
/mo

$300/mo · $3,600/yr

%
/mo

$450/mo · $5,400/yr

/mo

$500/mo · $6,000/yr

%

Your target rate

$164/hr

Minimum viable: $19/hr·W-2 equivalent: $255,054/yr

You need +89% over salary to cover real costs

Per day (8h)

$1,314

Per week

$4,107

Per month

$17,784

Billable time

55% of a 40h week year

55%
1,150h / yr6 wks off15h/wk non-billable

Employee equivalent

$255,054/yr

What an employer would pay with payroll tax + benefits (~35%).

≈ +155% over your take-home

  • • Employer payroll tax ~7.65%
  • • Benefits & insurance ~20–30%
  • • Paid leave, equipment, overhead

Your freelance rate

$164/hr

Covers taxes, benefits, expenses & risk — nothing hidden.

  • • Taxes: $49,286/yr
  • • Benefits: $11,400/yr
  • • Expenses: $3,600/yr

Client proposal preview

To earn $100,000/yr working 25 billable hrs/wk (46 wks/yr), charge $164/hr — that's $1,314/day, $4,107/wk, $17,784/mo.

Paste into proposals, invoices, or rate sheets. Link shares your exact inputs via URL.

Annual cost breakdown
Take-home $100,000 (53%) Taxes $49,286 (26%) Benefits $11,400 (6%) Expenses $3,600 (2%) Buffer $24,643 (13%)

Business expenses

$3,600

Estimated taxes

$49,286

Benefits (health + retirement)

$11,400

Total needed (with buffer)$188,929

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Guides & Resources

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The formula behind the magic

How this calculation works

Most freelancers guess. We use an 8-step formula that factors in every real cost of being self-employed — so your rate covers life, not just labor.

01

Your Target Take-Home Pay

Start with how much money you want in your bank account each year — after all taxes. This is your lifestyle number.

02

Self-Employment Tax (15.3%)

Employees split FICA taxes with their employer. As a freelancer, you pay both halves. On $100K net, that's $15,300.

03

Federal & State Income Tax

The calculator uses your combined federal + state rate to ensure every tax dollar is accounted for.

04

Health Insurance

Marketplace plans run $400–$2,500/month. Fully deductible — but you still need to earn it first.

05

Retirement Contributions

Solo 401(k) allows up to $70,000 in contributions. You're your own retirement plan now.

06

Business Expenses

Software, hardware, home office — these add up to $5K–$20K+ annually.

07

Billable Hours Reality

15–25 billable hours/week is realistic. The rest is admin, proposals, and marketing.

08

Risk Buffer (10–20%)

Clients pay late, projects get cancelled. Freelancers don't have unemployment insurance.

The Formula: (Take-Home + SE Tax + Income Tax + Insurance + Retirement + Expenses + Buffer) ÷ Billable Hours

Recalculate quarterly — rates should evolve as your skills and costs do.

The hidden gap

Why most freelancers undercharge by 30–50%

The “just divide by 2,080” method ignores hidden costs:

  • Self-employment tax (15.3%) — employers normally pay half
  • Health insurance ($400–$2,500/mo) — employers cover 50–80%
  • No 401(k) match, no paid vacation, no sick days
  • Non-billable time eats 30–50% of your week

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Answers

Frequently Asked Questions

Everything you need to know about freelance rates.

What is the freelance lifestyle calculator?

It's a tool that calculates your true minimum freelance rate based on your desired lifestyle — target income, weekly hours, time off, expenses, and risk tolerance. Unlike simple rate calculators, it factors in self-employment tax, health insurance, retirement, and non-billable time.

How is my freelance rate calculated?

The calculator starts with your target annual take-home pay, adds self-employment tax (15.3%), income tax, health insurance, retirement contributions, and business expenses. It then divides by your billable hours and adds a risk buffer.

Why do most freelancers undercharge?

Most set rates based on employee salary ÷ 2,080 hours, ignoring self-employment tax (15.3%), health insurance, no retirement match, unpaid time off, business expenses, and non-billable time. The real gap is typically 30–50% higher than most expect.

How much should I set aside for taxes?

Plan for 25–35% of each payment for federal and state taxes. Self-employment tax alone is 15.3% (12.4% Social Security + 2.9% Medicare).

How often should I recalculate?

At minimum quarterly, or whenever costs change — new insurance, moved, added software, or gained skills. Annual review is essential.

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