Freelancer Profitability Calculator
Revenue is vanity, profit is sanity. This calculator shows your actual take-home profit after expenses, taxes, and the costs you didn't know you had.
Freelance Project Profitability Calculator
Determine if a project is worth your time after expenses and taxes
This project is profitable! Your effective rate of $112.50/hr meets your $75.00/hr target.
Note: The tax rate is a simplified estimate. Actual taxes include self employment tax (15.3%), federal income tax brackets, and state taxes. Expenses include direct project costs only, not overhead. Adjust the tax rate based on your marginal rate and SE tax obligations.
Track Every Dollar of Your Freelance Income
Know exactly where your money goes. This Google Sheets planner auto-generates insights on your income, expenses, and savings — so you can see if you're actually profitable.
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Frequently Asked Questions
What is a good profit margin for freelancers?+
Most successful freelancers aim for a 40-60% profit margin (after taxes and business expenses). If you're below 30%, you're either undercharging or over-spending. Below 15% and you're essentially working for free after considering the risks of self-employment.
What expenses should freelancers track?+
Track everything: software subscriptions, home office, phone/internet, professional development, marketing, travel, equipment, coworking space, health insurance, retirement contributions, and professional services (accountant, lawyer). These all reduce your taxable income.
How often should I review my freelance profitability?+
Monthly minimum, quarterly ideally. Track revenue vs. expenses every month so you can catch pricing problems early. A quarterly review lets you adjust rates, cut expenses, or shift focus before a bad quarter becomes a bad year.
What is a good profit margin for freelancers?
Most successful freelancers aim for a 40-60% profit margin (after taxes and business expenses). If you're below 30%, you're either undercharging or over-spending. Below 15% and you're essentially working for free after considering the risks of self-employment.