Freelancer Income Goal Calculator
Same formula as the rate calculator, started from a monthly personal income. Multiply that goal by 12, add the year’s business costs, and gross it up by the tax reserve. Then divide by the billable hours you can defend.
Calculator
How the number is produced
Personal income for the year = monthly goal × 12. Required revenue = (personal income + business costs) ÷ (1 − tax reserve). Hourly = revenue ÷ billable hours. Monthly revenue target = revenue ÷ 12.
Worked example
A monthly goal of €3,333 is about €40,000 a year. With €8,000 costs and a 25% reserve, revenue is €64,000. At 1,200 billable hours the rate is €53.33, and the monthly revenue target is €5,333.33.
When this is useful
You think in monthly personal income and need the revenue the business has to bring in, which is a larger number.
Limits
Twelve equal months are assumed. A slow month is not smoothed for you. Tax reserve is not a filed return.
More on the assumptions is on how the calculators work.
Questions
How is this different from the rate calculator?
The arithmetic is the same. This page starts from a monthly income goal so the year is explicit.
Related tools
If a result disagrees with the formula on this page, email hello@gettowork.online.