Freelance Expense Calculator
Estimate your freelance business expenses, total monthly costs, yearly costs, and the revenue needed to cover them.
Overview
The Freelance Expense Calculator helps you estimate what it costs to run your freelance business each month and year. Enter your software, workspace, marketing, other business costs, annual one-off expenses, billable hours, and target profit margin to see your cost base and pricing target.
How it works
This calculator adds up your recurring monthly business costs and converts annual one-off expenses into a monthly equivalent by dividing them by 12. It then estimates your total monthly and yearly expenses. To help with pricing, it calculates the monthly revenue needed to cover those costs while also achieving your chosen profit margin. Finally, it divides that revenue target by your billable hours to estimate a minimum hourly rate.
How to use this calculator
- 1Enter your monthly software and subscription costs.
- 2Add your monthly workspace, marketing, and other business expenses.
- 3Include any annual one-off costs such as equipment or memberships.
- 4Estimate how many billable hours you work each month.
- 5Set your target profit margin.
- 6Review your monthly expenses, annual expenses, revenue target, and hourly rate estimate.
Example Calculation
Monthly software costs
$120
Monthly workspace costs
$350
Monthly marketing costs
$100
Other monthly business costs
$180
Annual one-off costs
$1,200
Billable hours per month
75
Target profit margin
20%
Total monthly expenses
$850
If your monthly recurring costs are $750 and your annual one-off costs are $1,200, your estimated monthly expenses are about $850. With a 20% target profit margin, you would need about $1,063 per month in revenue, which works out to roughly $14.17 per billable hour over 75 billable hours.
Frequently asked questions
What does this freelance expense calculator estimate?
It estimates your total monthly and annual freelance business expenses, the monthly revenue needed to cover them, and a suggested minimum hourly rate based on your billable hours.
Should I include taxes in my expenses?
You can, but this calculator does not automatically add taxes. If you want taxes reflected in your target, include them in your entered costs or adjust your profit margin accordingly.
What counts as billable hours?
Billable hours are the hours you expect to charge to clients. They usually exclude admin, marketing, proposals, unpaid meetings, and time off.
Why does the calculator use annual one-off costs?
Some freelance costs do not happen every month, such as equipment upgrades, renewals, or training. The calculator spreads those costs across the year for a steadier monthly estimate.
Can I use this calculator to set my freelance rates?
It can help you estimate a baseline hourly rate, but many freelancers also factor in experience, market demand, project complexity, and non-billable time when pricing their work.
Explore Related Calculators
Assumptions and warnings
Assumptions
- All amounts are entered in the same currency.
- Annual one-off costs are spread evenly across 12 months.
- Billable hours reflect actual client-billed time, not total working time.
- Results are estimates and do not include taxes unless you add them into your costs or pricing.
Warnings
- This calculator provides an estimate only and is not financial advice.
- Actual freelance expenses and pricing needs may vary over time.