The freelance income calculator estimates annual gross income from billable hours and project income, then subtracts business expenses and an optional user-provided tax set-aside. It separates revenue, expenses, and net figures for simple planning.
How to use this calculator
Enter hourly rate, average billable hours per week, working weeks per year, and any additional annual project income. Add annual business expenses and an estimated tax or set-aside percentage applied to income after expenses.
Formula & calculation method
Gross = hourly rate × billable hours × weeks + project income; pre-tax net = gross − expenses; after-set-aside = pre-tax net × (1 − tax rate)Billable hours exclude non-billable administration and marketing time. The set-aside calculation uses net income before tax as its base. If expenses exceed gross income, pre-tax net is negative and a simple percentage model may not reflect actual tax treatment.
Worked example
At 40 per hour, 25 billable hours, and 46 weeks, hourly-based gross income is 46,000 before project income. Subtracting expenses gives a clearer planning figure than revenue alone.
Why this is useful
The calculator highlights the difference between an hourly headline rate and actual annual income. Separate gross, pre-tax, and after-set-aside results help with pricing, budgeting, and workload scenarios.
Limitations to keep in mind
The estimate does not calculate jurisdiction-specific taxes, deductions, benefits, unpaid invoices, currency changes, or irregular work. The optional percentage is only a planning assumption, not tax advice or a filing calculation.
Frequently asked questions
Are all working hours billable?
Usually not. Use only hours you expect to invoice, excluding administration, marketing, training, and other unpaid work.
What does the tax rate apply to?
It applies to gross income minus entered business expenses. Actual tax bases and rules may differ.
Can I calculate monthly income?
The calculator reports annual figures and a simple monthly average by dividing by twelve; actual monthly income may be irregular.