How this works
Most calculators ask for an hourly rate and tell you what is left. This one does the opposite — it starts from the number that matters (the net you want in your pocket) and works backwards. First it recovers the gross you need: gross = net ÷ (1 − tax burden). Then it adds annual business expenses and divides by the days you can actually bill. The result is the day rate; the hourly rate is that over 8. The tax burden stays editable on purpose, because the real weight of IRS and Social Security shifts with your bracket and regime.
Frequently asked
What should I put for "tax burden"?
It depends. For the self-employed, Social Security is 21.4% applied to 70% of what you invoice for services — roughly 15% of revenue. On top of that comes IRS (income tax), which under the simplified regime usually taxes 75% of service income and then runs through progressive brackets. Add it up and 30% is a sensible starting point for mid incomes; higher earners easily pass 35-40%, low earners sit below. Check with your accountant and tune the field.
Why start from net instead of gross?
Because what runs your life is what is left at month-end, not the number on the invoice. Instead of guessing an hourly rate and seeing what survives, this calculator works backwards: you say what you want in your pocket and it returns the rate you must charge to get there, with tax and expenses on top.
What counts as "business expenses"?
Everything you pay to work that is neither your pay nor your taxes: accountant, software and licences, equipment, coworking or part of your rent, internet and phone, training, insurance. Add the annual total. These expenses are passed straight into the rate — they do not come out of your net.
Why 220 billable days, not 365?
Nobody bills 365 days. Strip out weekends (~104), public holidays, vacation, sick days and the time you spend chasing clients, writing proposals and doing admin. What remains — typically 200 to 230 days — is what you can actually charge a client for. Use 220 as a base and adjust to your reality.
Is the hourly rate just the day rate over 8?
Yes, assuming an 8-hour working day. If you sell half-days or loose hours, remember short tasks always carry fixed costs (context-switching, comms) — many freelancers price a one-off hour above this average. Treat the hourly figure as a floor, not a ceiling.
Does this work for the first year of activity?
Partly. If you open activity for the first time you are exempt from Social Security contributions for the first 12 months, so your real burden in that window is lower — put a smaller percentage. From the 12th month the normal contributions kick in. IRS still applies.
DISCLAIMER
An honest estimate, not tax advice. The default tax burden (30%) is a starting point: the real IRS and Social Security figure depends on your income, bracket, regime (simplified or organised accounts) and personal situation. Social Security for the self-employed is 21.4% on 70% of service revenue (about 15% effective), plus IRS on top. Tune the field and confirm the numbers with your accountant and the tax authority. 2026 references.