Self-employed professionals face unique costs that employees do not: self-employment taxes, no employer benefits, and full responsibility for gaps between clients. This calculator helps you price for that reality.
// frequently asked questions
How do I calculate my hourly rate as self-employed?
Start with your target annual income, add self-employment taxes and business expenses, then divide by realistic billable hours. Self-employed professionals typically bill 60-75% of their working time. This calculator handles all of this automatically.
What taxes do self-employed people pay?
Self-employed people pay income tax plus self-employment tax or national insurance contributions, depending on country. In the US this is 15.3% SE tax on top of income tax. In the UK it is Class 2 and Class 4 National Insurance. Use the tax slider to set your rate.
How is self-employed hourly rate different from employee salary?
To compare: divide your target annual salary by 2000 hours for a rough equivalent, then add 30-50% to cover taxes, benefits gap, equipment, and gaps between clients. This calculator does the precise version of this calculation.