How do I calculate a billable hourly rate from a target W-2 salary?

Add 25%-30% for self-employment taxes, healthcare, and overhead, then divide by billable annual hours (typically 1,000 to 1,500 hours after unbillable admin, marketing, and PTO).

How much should 1099 independent contractors set aside for quarterly taxes?

Independent contractors should set aside 25% to 35% of net profit to cover the 15.3% self-employment tax (FICA/Medicare) plus federal and state income taxes.

What business expenses can 1099 freelancers deduct to lower self-employment tax?

Eligible deductions include home office space, internet, computer hardware, software subscriptions, travel, health insurance premiums, and retirement contributions (SEP-IRA / Solo 401k).

1099 Contractor & Consultant Engine

Freelance Rate & Tax Calculator

Never undercharge again. Calculate your minimum billable rate to hit your target personal take-home salary after SE tax, healthcare, software, and non-billable client admin.

Income & Overhead Inputs

Target Annual Take-Home Net ($)

Annual Business Expenses / Tools ($)

Annual Health Ins & Retirement ($)

Estimated Tax Rate (SE + Fed/State) (%)

Billable Capacity & Working Hours

Weeks Worked / Year (excl PTO)

Total Hours / Week

Billable % (e.g., 65% client work)

Your Billable Rates

Required Minimum Hourly Rate

$124 / hr

Standard Day Rate (8 hrs): $992 / day

Monthly Retainer (40 hrs/mo): $4,960 / mo

Total Gross Invoicing Target: $154,861 / yr

Annual Billable Hours: 1,248 hrs

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