From Hourly Rate to Take-Home

Freelance rates have a long chain before they reach your pocket: base rate × hours gives revenue, an experience multiplier adjusts for market position, expenses (software, insurance, marketing, self-employment tax) take 25–40%, and income tax takes its share. The headline rate is marketing; the effective rate is reality. This calculator walks the whole chain.

The Effective Rate Is the Number to Trust

Net profit divided by hours worked — the effective hourly rate — is what survives contact with the real world. At $75/hr with 30% expenses, you effectively earn $52.50/hr before taxes. That's the figure to compare against a salaried offer, and the one that tells you whether a "premium" rate actually is one after expenses.

Work Backward From Your Target

Instead of asking "what can I charge?", ask "what do I need to make?" Divide a target monthly income by the effective rate to get required billable hours — and compare that to your realistic capacity of 20–25 billable hours a week. If the required hours exceed capacity, the rate (or the level) has to rise, not the workweek.