Your situation
Extra self-employment cost covers things like the employer share of social contributions you now pay yourself. Adjust it for your country.
Your freelance equivalent
To match your salary, charge
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per hour
Your salary per hour now
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Freelance rate is
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Yearly revenue needed
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Monthly revenue needed
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Billable hours / year
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Daily rate
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How the conversion works
- Revenue needed = salary × (1 + benefits % + self-employment %) + business expenses
- Billable hours = billable hours per week × (52 − weeks off)
- Freelance hourly rate = revenue needed ÷ billable hours
- Salary hourly rate = salary ÷ (job hours per week × 52)
This keeps your pre-tax position equal to your job. Treat the result as a minimum, and add a margin if you want freelancing to pay better than your salary.
Frequently asked questions
How do I convert my salary to a freelance rate?
Add the value of your benefits and extra self-employment costs to your salary, add business expenses, then divide by the hours you can realistically bill in a year.
Why is the freelance rate so much higher than my salary hourly wage?
Employees are paid for 40 hours a week including holidays and admin. Freelancers bill fewer hours, pay for their own benefits and expenses, and have unpaid time off.
What are employee benefits worth?
Health cover, pension contributions, paid leave and equipment are often worth 15 to 30 percent of a salary.
Already know your target income?
Use the hourly rate calculator to work backwards from the take-home amount you want.