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Freelance Budget Calculator

Helps freelancers project income needs and determine what to charge to cover expenses and taxes

Rent, food, insurance, bills, etc.

Estimated combined tax rate (federal + state + self-employment)

How much you want to save each month after taxes

Time spent on admin, marketing, learning, etc.

Required Gross Monthly Income

Total you need to earn before taxes to cover expenses and savings

Minimum Hourly Rate (at 160hr month)

Minimum rate assuming a 160-hour work month minus non-billable time

Required Billable Hours by Rate

Hours needed at different hourly rates to meet your income goal

Frequently Asked Questions

How much should a freelancer budget for taxes?

In the US, freelancers should set aside 25-35% of income for federal and state income taxes plus self-employment tax (15.3%). The exact amount depends on your total income, deductions, and state tax rates. Quarterly estimated payments are required.

What expenses should freelancers budget for?

Beyond personal living expenses, budget for health insurance, retirement contributions, self-employment taxes, business insurance, software and tools, professional development, accounting fees, and an emergency fund covering 3-6 months of expenses.

How do I calculate my minimum freelance income?

Add your monthly personal expenses to your savings goal, divide by (1 minus your tax rate) to get your required gross income. Then divide by your estimated billable hours to find the minimum hourly rate that covers everything.