Question 1

Why can't I just multiply my hourly rate by 2,080 hours?

Accepted Answer

A standard work year has 2,080 hours (40 hours x 52 weeks), but freelancers typically only bill 55% to 75% of their time. The remaining hours are spent on marketing, bookkeeping, invoicing, and unpaid time off.

Question 2

What is the self-employment tax and how does it affect my rate?

Accepted Answer

In the United States, self-employed contractors must pay both the employer and employee portions of FICA (Social Security and Medicare), totaling 15.3%, on net business profit.

Question 3

How much should a freelancer add to their rate to cover health insurance?

Accepted Answer

Individual private health insurance typically costs between $400 and $700 per month. Factoring in dental, vision, and out-of-pocket maximums, add at least $5 to $10 per billable hour to cover health costs.

Question 4

What is the standard billable hours percentage for independent consultants?

Accepted Answer

Most full-time independent consultants achieve between 20 and 30 billable hours per week (around 1,000 to 1,500 billable hours annually) after deducting business development and administrative overhead.

Question 5

How does this tool calculate the equivalent corporate employee (W-2) salary?

Accepted Answer

The equivalent employee salary takes your net take-home freelance earnings and adjusts for employer-paid payroll taxes, company healthcare contributions, and paid holidays.

Question 6

Is any of my financial or rate data stored or uploaded?

Accepted Answer

No. The calculator operates strictly within your local browser runtime using client-side JavaScript. No numbers are logged or sent to any remote server.

Rate & Workload Assumptions

Annual Income Projections

Frequently Asked Questions