Freelancer Rate Calculator: Hourly to Annual Conversion Explained
How much do you actually make as a freelancer? Earning $50/hour doesn't mean a $100k salary. Here is how to accurately convert your freelance hourly rate into an annual salary equivalent.
One of the most common mistakes new freelancers make is applying standard corporate math to freelance income. Earning $50 an hour does not translate to $104,000 net salary due to hidden business costs.
Account for unbillable admin/sales overhead, vacation days, public holidays, self-employment taxes, and software costs. Most freelancers only bill about 60% of their actual working hours (approx 1,150 hours per year).
Use the Correct Formula: If you want to take home the equivalent of a $100,000 W-2 corporate salary, reverse-engineer the math to set your freelance rate around $113/hour.
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