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 net hourly rate of $78.75/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.
Advertisement
Smart Budget Planning for Your Business
Track every dollar of your business income and expenses with a dynamic Google Sheets budget planner. Automated insights, interactive dashboard, and full history tracking.
Affiliate link — we earn a commission at no cost to you. We only recommend products we trust.
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.
Related Free Calculators
Freelancer Rate Calculator
Are you charging what you're worth? This calculator factors in your expenses, taxes, profit goals, and billable hours to tell you the minimum rate you should charge.
Freelancer Retirement Savings Calculator
No employer 401(k) match? No problem. This calculator shows you how much to save monthly to hit your retirement goal — and the best account types for freelancers.
Freelance Project Rate Calculator
Hourly rates leave money on the table. This calculator helps you set a profitable project rate based on your time estimate, complexity, revision rounds, and desired profit margin.
Freelancer Savings Rate Calculator
How much should you actually save? This calculator shows your ideal savings rate based on your income, expenses, tax obligations, and financial goals — including emergency fund timeline.
Freelance Hourly vs. Project Pricing Calculator
Should you charge hourly or per project? This calculator compares both approaches using your actual work patterns to show which earns you more money.
Freelancer Net Worth Calculator
Track your financial health as a freelancer. This calculator shows your total net worth — assets minus liabilities — and helps you set targets for building wealth on your own terms.