Freelance Monthly Income Calculator
Estimate your average monthly freelance income after accounting for billable hours, hourly rate, expenses, tax set-aside, and non-billable time.
Overview
This freelance monthly income calculator helps you estimate how much you may earn in an average month based on your hourly rate, billable hours, monthly expenses, tax set-aside, and unpaid work time. It is useful for pricing, budgeting, and planning your freelance workload.
How it works
The calculator multiplies your hourly rate by your monthly billable hours to estimate gross income. It then subtracts monthly business expenses to find profit before tax. A tax set-aside percentage is applied to that profit, and the remaining amount is shown as estimated take-home income. It also compares your take-home income with your total monthly work hours, including non-billable time, to estimate your effective hourly rate.
How to use this calculator
- 1Enter your average hourly rate.
- 2Add your typical billable hours per week.
- 3Enter the number of working weeks in a month.
- 4Include your monthly business expenses.
- 5Set the percentage you want to reserve for taxes.
- 6Review your estimated gross income, take-home income, and effective hourly rate.
Example Calculation
Hourly rate
$60
Billable hours per week
20
Working weeks per month
4.33
Monthly business expenses
$400
Tax set-aside rate
25%
Non-billable hours per week
8
Gross monthly income
$5,196
If you charge $60 per hour, work 20 billable hours per week over 4.33 weeks, spend $400 per month on business expenses, and set aside 25% of profit for tax, your estimated gross monthly income is about $5,196 and your estimated take-home income is about $3,597.
Frequently asked questions
What does this freelance monthly income calculator estimate?
It estimates your gross monthly freelance income, tax set-aside, take-home income, and effective hourly rate based on your typical workload and expenses.
Should I include non-billable hours?
Yes. Non-billable hours help you understand how much time you actually work and what your effective hourly rate looks like after unpaid tasks are included.
What counts as monthly business expenses?
You can include software, equipment leases, internet used for work, marketing, coworking, insurance, bookkeeping, and other regular business costs.
Why is tax shown as a set-aside instead of actual tax?
Tax rules vary by country, state, business structure, deductions, and income level, so this calculator uses your chosen percentage as a simple planning estimate.
Can I use this calculator if I charge per project instead of per hour?
Yes. You can convert your average project income into an approximate hourly rate or use your typical monthly billable hours and an effective average hourly rate.
What is an effective hourly rate?
It is your estimated take-home income divided by all the hours you work, including both paid client work and unpaid admin or marketing time.
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Assumptions and warnings
Assumptions
- Results are monthly estimates based on your average hourly rate and working hours.
- The calculator assumes your billable hours and non-billable hours are relatively consistent each week.
- Tax set-aside is a simple percentage of profit before tax and does not reflect actual tax rules or deductions.
- Business expenses are treated as monthly costs and are subtracted before the tax set-aside is calculated.
Warnings
- This calculator provides an estimate only and is not financial or tax advice.
- Actual income and tax obligations may vary based on your contracts, location, deductions, and business structure.