$0.00 / hour
Calculating Sustainable Freelance Rates
Many independent contractors fail to account for non-billable hours and business overhead, leading to lower-than-expected net earnings. This calculator accounts for taxes, business expenses, and desired personal income against realistic billable time.
The Formula:
Hourly Rate = (Desired Salary + Operating Expenses) / ((52 - Vacation Weeks) * Billable Hours Per Week)
Accounting for Overhead:
Operating expenses include software subscriptions, hardware depreciation, health insurance, and retirement planning. Standard advisory guides suggest allocating an additional 25% to 35% on top of your target wage to offset self-employment tax liabilities.