Freelance Annual Income Calculator
Estimate your annual freelance income based on your hourly rate, billable hours, working weeks and business expenses.
Overview
The Freelance Annual Income Calculator helps you estimate how much you could earn over a year from client work. Enter your hourly rate, typical billable hours per week, working weeks per year, any additional freelance income, annual business expenses and an estimated tax rate to see your gross and net income.
How it works
The calculator multiplies your hourly rate by your weekly billable hours and working weeks to estimate annual billable income. It then adds any extra freelance income to produce gross annual income. After subtracting annual business expenses, it applies your estimated tax rate to the remaining amount to give a simple after-tax annual and monthly income estimate.
How to use this calculator
- 1Enter your average hourly rate.
- 2Add the number of billable hours you expect to work each week.
- 3Choose how many weeks you expect to work during the year.
- 4Include any other annual freelance income such as retainers or fixed-fee projects.
- 5Enter your annual business expenses and estimated tax rate.
- 6Review your estimated gross income, net annual income and average monthly net income.
Example Calculation
Hourly rate
$60
Billable hours per week
20
Working weeks per year
48
Other annual freelance income
$6,000
Annual business expenses
$8,000
Estimated tax rate
25%
Gross annual income
$63,600
At $60 per hour, 20 billable hours per week and 48 working weeks, estimated billable income is $57,600. Adding $6,000 of other freelance income gives $63,600 gross. After $8,000 of expenses and 25% estimated tax, net annual income is about $41,700, or roughly $3,475 per month.
Frequently asked questions
What does this freelance annual income calculator estimate?
It estimates your gross freelance revenue, income after business expenses, estimated tax and net annual and monthly income.
Should I include only billable hours?
Yes. Enter only the hours you expect to charge clients for, not admin, marketing or unpaid work.
Can I include project fees or retainers?
Yes. Add fixed-fee work, retainers or other non-hourly freelance income in the other annual income field.
Does this calculator include tax brackets?
No. It uses the single tax rate you enter for a simple estimate, so actual tax may be different.
What counts as business expenses?
Typical examples include software subscriptions, equipment, insurance, marketing, coworking costs and work-related travel.
Why is my monthly net income lower than expected?
Freelancers often overestimate billable time and underestimate expenses or taxes, so adjusting those inputs can change the result.
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Assumptions and warnings
Assumptions
- This calculator assumes your hourly rate and billable hours stay fairly consistent throughout the year.
- Other annual freelance income is added directly to your hourly billing income.
- Business expenses are treated as annual deductible costs before tax is estimated.
- Tax is estimated using the single percentage you enter and does not account for brackets, allowances or local rules.
- Results are estimates for planning purposes and may differ from your actual income.
Warnings
- This calculator provides an estimate only and is not financial or tax advice.
- Tax rules and deductible expenses vary by location and personal circumstances.
- Speak to a qualified accountant or tax professional before making major financial decisions.