Income Goal
Define the annual amount the business needs to support you.
Self-employed pricing
Self Employed Hourly Rate Calculator
Estimate an hourly rate for self-employed work after accounting for tax reserves, health insurance, business expenses, unpaid admin, slow periods, and your target annual income.
Self-Employed Hourly Rate Formula
Planning formula
Self-employed hourly rate = target annual income plus expenses plus tax reserve plus risk buffer, divided by annual billable hours.
Self-employed work can feel profitable at the invoice level but weak after unpaid time, tools, marketing, insurance, taxes, and inconsistent demand are included.
Inputs to Estimate
Expenses
Include recurring software, equipment, services, workspace, and insurance.
Taxes
Reserve cash for self-employment and income tax obligations.
Unpaid Time
Account for admin, marketing, calls, proposals, and learning.
Risk Buffer
Add margin for slow months, late payments, and unexpected costs.
This page is for rough planning only and is not tax, legal, financial, accounting, or employment advice.
FAQ
Should my self-employed rate include taxes?
Yes, rate planning should account for tax reserves, although actual tax liability depends on your full situation.
Is self-employed hourly rate the same as take-home pay?
No. The hourly rate is what you charge. Take-home pay is what may remain after expenses, taxes, insurance, and reserves.