Estimate your real take-home pay and effective hourly rate.
Our calculator takes your hourly rate, billable hours, and work weeks to determine your gross income. Then, it subtracts your business expenses, self-employment taxes, and estimated income taxes to give you a clear picture of your real take-home pay.
The self-employment tax (usually 15.3% in the US) covers Medicare and Social Security taxes that are typically split between an employer and employee. As a freelancer, you are responsible for the full amount.
Common expenses include software subscriptions, internet bills, hardware/equipment, home office costs, health insurance, and marketing.
Your effective hourly rate accounts for unbillable time (if you work fewer weeks or hours), business expenses, and taxes. This shows you how much you are actually taking home for every hour you bill.
You can improve your take-home pay by increasing your hourly rate, reducing unnecessary business expenses, optimizing your tax deductions, and increasing your total billable hours.