To replace a $80,000 salary as a freelancer you need to cover what the employer paid on top of it. At 1,200 billable hours that means charging about $85/hour ($682 per day) — versus $38 as a simple employee hourly figure.
| Billable hours / yr | Hourly rate needed | Day rate (8h) | Monthly revenue |
|---|---|---|---|
| 1,000 h | $102 | $819 | $8,527 |
| 1,200 h | $85 | $682 | $8,527 |
| 1,400 h | $73 | $585 | $8,527 |
| 1,600 h | $64 | $512 | $8,527 |
What is included
- Salary $80,000
- Employer half of payroll tax (7.65%): $6,120
- Health cover: $7,000/yr (adjust for your country)
- Retirement match (4%): $3,200
- Business overhead (software, equipment, insurance, accounting): $6,000/yr
Paid time off is handled by using billable hours instead of 2,080. Customize every line in the salary to freelance rate calculator. Employees in the US can compare against their take-home pay by state.