Calculate your minimum viable hourly rate as a freelancer. Factor in taxes, business expenses, vacation, and profit margin to never undersell yourself again.
Practical example: $60K goal, remote worker. For a junior developer scenario, enter the values that match your situation to get an instant cost estimate.
Why is my freelance rate so much higher than my salary? As a freelancer, you pay self-employment tax (15.3%), your own health insurance ($3K-15K/year), business expenses, and don't get paid vacation. A $100K salary converts to roughly $75-90/hr freelance to maintain the same take-home.
Formula: Gross Revenue Needed = (Desired Take-Home + Business Expenses) / (1 − Tax Rate)
Minimum Hourly Rate = Gross Revenue Needed / Billable Hours Per Year
Recommended Rate = Minimum Rate × (1 + Profit Margin / 100)
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