Written by Jere SalmistoReviewed by CalcFi EditorialLast verified:

Freelancer Finances

5 calculators in this journey

Set your rate, handle taxes, and build the financial foundation that makes freelancing sustainable.

Step-by-Step Guide

1

Set your hourly rate

Calculate your hourly rate by factoring in desired income, business expenses, and time off.

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2

Estimate self-employment tax

Estimate your self-employment tax liability and quarterly payment requirements.

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3

Claim home office deduction

Calculate the home office deduction using simplified or actual expense methods.

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4

Employee vs. contractor

Understand the key differences and tax implications between being a contractor vs. employee.

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5

Plan retirement as freelancer

Explore retirement savings options available to freelancers like Solo 401k and SEP-IRA.

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Ready to Start?

Complete all 5 steps of this journey and we'll track your progress. Start with the first calculator and we'll guide you through the rest.

Begin Freelancer Finances

Frequently Asked Questions

How do I calculate my hourly rate?

Consider your desired income, business expenses, and vacation time. Our calculator factors in all these costs to determine a competitive hourly rate.

How much self-employment tax will I owe?

Self-employment tax is about 15.3% of net income. Our calculator estimates your quarterly tax liability so you can set aside the right amount.

What home office deduction can I take?

You can deduct a portion of rent, utilities, and maintenance based on your office square footage. Our calculator shows the simplified and actual methods.

Am I a contractor or employee?

The IRS uses specific criteria to classify workers. Understanding the differences affects taxes, benefits, and rights. Our guide explains the distinctions.

How should I save for retirement as a freelancer?

Solo 401k and SEP-IRA are popular options for freelancers. Our calculator shows contribution limits and helps you choose the best vehicle.

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