What should I charge? Work backwards from the income you want
Enter the take-home pay you're aiming for, your state, and your real billable hours. We add self-employment tax, income tax, expenses, and retirement on top — and show the rate your clients need to pay for the math to work.
| Gross revenue you need to bill | – |
| Business expenses | – |
| Self-employment tax (15.3%) | – |
| Federal income tax (est.) | – |
| State income tax (est.) | – |
| Retirement savings | – |
| Your take-home income | – |
For projects: estimate the hours the job will take, multiply by your hourly rate above, then add materials (with markup) and a 10–25% buffer for overruns.
Estimates use 2025 federal brackets, the standard deduction, and an approximate state rate. Local taxes, credits, and deductions beyond the standard deduction are not included. Not tax advice.
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How this calculator works
Most people price themselves forwards: pick a rate that sounds reasonable, multiply by hours, and hope. This tool prices backwards, the way a business does:
1. Start with take-home. The number that pays your rent and groceries — what's left after every tax and business cost.
2. Add taxes. Self-employed workers pay 15.3% self-employment tax on net earnings (both halves of Social Security and Medicare), plus federal income tax and, in most states, state income tax. We estimate all three using 2025 rules and the standard deduction.
3. Add business expenses and retirement. Insurance, tools, software, fuel, and the retirement contribution an employer would otherwise match — clients fund all of it through your rate, or it comes out of your pocket.
4. Divide by billable hours. Not hours worked — hours you can actually invoice. Admin, marketing, drive time, and empty slots don't pay. This single honest input is what separates a sustainable rate from slow-motion underpricing.
Frequently asked questions
Why is the rate higher than I expected?
Because roughly 25–40% of every self-employed dollar goes to taxes before expenses, and because billable hours are fewer than working hours. A $65,000 take-home target routinely requires billing $95,000–$110,000 in revenue. The calculator isn't being pessimistic — the salary world just hides these costs from employees.
Is the retirement field really necessary?
It's optional, but consider this: an employed person gets retirement help from an employer. You don't. Pricing your retirement contribution into your rate is how self-employed people avoid arriving at 65 with nothing but equipment. Pre-tax contributions also lower your income tax, which the calculator accounts for.
How accurate are the tax estimates?
Federal numbers use the 2025 brackets and standard deduction with the self-employment tax deduction applied. State numbers use a flat or estimated effective rate, so progressive states are approximate, and local/city taxes aren't included. Treat results as a planning estimate, then confirm with a tax professional — especially if you might benefit from an S-corp election or itemized deductions.
How do I quote a project instead of an hourly rate?
Estimate the hours honestly (then add 10–25% — everything takes longer), multiply by your calculated hourly rate, and add materials with markup. Quote the total, not the breakdown. Clients buy outcomes; the hourly rate is your internal floor, not a public menu.