Salary to Hourly Calculator
Convert an annual salary to an equivalent freelance hourly rate — accounting for taxes, overhead, and actual working hours.
$
40 hrs
2 wks
$200/mo
Freelance Equivalent Rate
$47/hr
To match $80,000/yr as a freelancer
Raw hourly (hours only)$40/hr
+ SE tax (15.3%)$46/hr
+ Monthly overhead$47/hr
Annual billable hours2,000 hrs
Why freelance rates are higher than salaries
Employees have their payroll taxes, benefits, equipment, and office covered by the employer. Freelancers pay 15.3% self-employment tax on top of income tax, cover all tools and software, do not receive paid vacation, and spend unbillable hours on sales and administration. A $80,000 salary is equivalent to roughly $55-65/hr as a freelancer — before accounting for skill premium and market positioning.