Freelance Income Calculator

How this calculation works

Freelance income is rarely consistent month to month. This calculator helps you understand your true hourly rate after expenses, so you can set minimums that actually cover your costs.

Many freelancers forget to factor in non-billable time — client calls, admin, marketing, invoicing. A good rule of thumb: billable hours are 60-70% of total working hours. Keep that in mind when setting your target rate.

How this Freelance Income Calculator works — 2026 guide

Freelance income looks great on paper until you subtract self-employment tax, business expenses, and the unpaid hours you spend finding clients. This 2026 freelance income calculator turns project fees and hours into your true effective rate: revenue ÷ billable hours, minus business expenses, with a built-in W-2 vs 1099 comparison. As a 1099 contractor you owe both halves of FICA — 15.3% on net earnings versus 7.65% for W-2 employees — but you can deduct business expenses under IRS Schedule SE rules, making the math very different from an employee paycheck.

How to use it in 3 steps

1. Enter the project fee (or annual freelance income) and the hours you actually work.
2. Add business expenses — software, marketing, travel, home office — to find your net effective rate.
3. Toggle the W-2 vs 1099 view to see how self-employment tax changes your take-home.

Who this is for

Freelancers setting rates, 1099 contractors planning quarterly estimated taxes, and side-hustlers deciding whether to stay independent. Use it with the [take home pay estimator](/tools/take-home-pay-estimator/) for the W-2 baseline and the [hourly to salary calculator](/tools/hourly-salary-calculator/) to see what an equivalent staff role would pay.

Data sources & authoritative references

This calculator is built on official U.S. rules and published statistics. Key sources:

• IRS — Self-Employment Tax (Schedule SE)
• IRS — 1099-NEC and Independent Contractor Rules