Never undercharge again. Factor in taxes, software overhead, and non-billable hours to price your services profitably.
| Target Annual Take-Home Net Income | $95,000 |
| Annual Operating Overhead (Software, Hardware, Office) | +$9,000 |
| Estimated Federal, State & Self-Employment Taxes | +$40,444 |
| Total Required Gross Annual Billings | $144,444 |
| Total Actual Billable Weeks (52 Weeks - Time Off) | 48 Weeks |
| Total Annual Billable Hours (at billable target) | 1,152 Hours |
| Minimum Sustainable Billable Rate | $125 / hr |
Full-time employees spend a huge fraction of their week in meetings, answering emails, and doing administrative work. As a self-employed freelancer or consultant, you cannot bill clients for client prospecting, invoicing, accounting, or business development. Aiming for 20 to 25 billable hours per week ensures sustainable work-life balance and protects you against burnout.