burst illustration Illustration of a piggy bank bursting at the seams with money

Budget & Rate Calculator

Establish your Monthly Budget & Recommended Hourly Rates

Use this calculator to get a better understanding of what you need to charge per hour (and earn annually) to pay your current or projected expenses. While many professionals prefer flat-rate pricing to hourly (because pricing hourly can punish efficiency), understanding the value of your time and what you need to earn per hour to survive/thrive helps you better estimate fees for project-based work.

Reminder: WE DON’T SAVE YOUR DATA. It’s currently only saved to this specific browser tab. Save your work by exporting your data. Select “Download My Information” to export the data you’ve entered. It will export as CSV/spreadsheet of your total budget that you can reference in the future!

Expenses

Add up all of your monthly expenses and overhead. Right now, we’re just calculating total money spent without taking into account how and if each expense can be written off during tax time. You can use rough estimates to get a general sense of your budget and rates.

If selected, 1/2 of the living expenses will be used in calculating your rates
Taxes, HOA, Insurance (divide annual by 12 if applicable)
If applicable
Electricity, water, gas, etc.
Medical, dental, prescriptions, gym membership, etc.
Clothing, personal items, etc.
Vacations, family visits, etc.

Staff & Contractors

Total payroll (Corporations / LLCs with W2 employees)
Average monthly sub-contractor payments

Office & Workspace

HOA dues, property taxes, property insurance, etc.
Electricity, water, gas, etc.

Insurance & Benefits

401k, IRA contributions, etc.

Software & Subscriptions

Adobe, Figma, Canva Pro, etc.
Dropbox, etc.
Spotify, Netflix, etc. if you take them as a business expense
Studioworks, etc.
Zoom, AI tools, etc.

Equipment & Technology

E.g. If you replace your computer every 3 years, divide the total purchase price by 36 to get the monthly cost.

Professional Services

Monthly cost (divide annual cost by 12)
Monthly cost (divide annual cost by 12)

Marketing & Business Development

Conferences, meetups, client entertainment, etc.
Courses, workshops, books, etc.

Travel & Transportation

if applicable
Gas, tolls, public transit passes, etc.
Airfare, hotels, taxis, etc.

Other Expenses

Any other monthly business expenses

Hours & Taxes

Enter your estimated billable hours below along with your estimated tax rate. Freelancers typically bill 20-25 hours per week (running a business involves a lot of non-billable admin work). We account for 2 weeks of vacation (50 weeks × weekly hours).

Income Tax Total (typically 15-45%) In the US, income taxes include federal income tax (based on your total income) plus state income tax (most states have this, but rates and structures vary). Underestimating income tax is a big issue for freelancers, so always confirm you current tax rates.
Rates & Income

Rates & Income

Your Rate Range: Your “Required Rate” is what you need to earn to cover basic expenses and not go into debt. Your “Desired Rate” is what you want to earn in order to live the lifestyle you want to live. The space between these rates is your “wiggle room” when it comes to pricing projects.

Total Monthly Overhead: —
Living Expenses: —
Business Expenses: —
Total Annual Overhead: —
Living Expenses: —
Business Expenses: —
Required Hourly Rate: —
Required Annual Salary: —
Desired Hourly Rate (2x): —
Desired Annual Salary (2x): —

Disclaimer: This tool is provided for informational and educational purposes only. It is not intended as legal, financial, tax, or business advice. The calculations and results are estimates based on the information you provide and should not be considered as professional advice.

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