What should you charge as a freelancer?
Work backward from the income you actually want to keep. This shows the rate you need to charge after self-employment tax, income tax, business expenses, and the hours you can't bill — the honest number, not a wishful one.
$
The money you keep for yourself after all taxes.
$
Software, gear, phone, insurance, subscriptions — the cost of running the business.
52 minus vacation, holidays, and sick days. 46–48 is realistic.
Hours you can actually invoice — not 40. Admin, sales, and email don't pay.
%
Rough federal + state income tax, on top of self-employment tax. Ask a CPA for your real number.
You need to charge at least
$0/hr
Round up to $0/hr for a clean, quotable rate.
Day rate
$0
You keep, per $1 billed
0¢
Where the money goes (per year)
| Revenue you need to bill | $0 |
| – Business expenses | $0 |
| – Self-employment tax (15.3%) | $0 |
| – Income tax (estimate) | $0 |
| = Your take-home pay | $0 |
Why this is higher than you expected: a freelancer isn't paid for a 40-hour week — only for billable hours. And you cover both halves of Social Security and Medicare (15.3%) that an employer would normally split with you. Charging your "old salary ÷ 2,080 hours" is how freelancers quietly go broke. This rate is what it actually takes to net your target.
Next steps for your number
Self-Employment Tax Calculator →See your exact 2026 SE tax once you know your profit.
Quarterly Tax Estimator →How much to send the IRS every quarter so April doesn't hurt.
Do Gig Workers Need an LLC? →When forming an LLC actually helps a freelancer (and when it doesn't).
All Calculators →Take-home pay, mileage, quarterly tax, and more.
Educational estimate only — not tax advice. Self-employment tax uses 2026 figures (15.3% on 92.35% of net earnings; Social Security capped at the $184,500 wage base, Medicare uncapped). Income tax is a rough set-aside you enter yourself and varies by state, filing status, deductions, and credits. Confirm your situation with a qualified CPA.