RatePilotPlan my rate

SALARY → FREELANCE

Replace the package, not just the paycheck.

Translate salary, benefits, paid time off, business overhead, taxes, and billable capacity into the client revenue your independent practice needs.

QUICK INPUTS

Replace the full package

PLANNING RESULT

$133/hour

This is the approximate hourly rate needed to replace compensation, costs, and estimated taxes at the capacity entered.

Revenue to replace salary$159,945
Monthly revenue$13,329
Tax reserve$39,945
Billable hours1,200

Educational estimate only. Taxes, benefits, and scope vary.

Why salary and freelance revenue are not equivalent

An employee salary is only one part of employment compensation. Employers may also fund payroll taxes, health coverage, retirement contributions, equipment, paid leave, professional development, and the time between internal assignments. A freelancer purchases or absorbs those benefits directly.

A more useful conversion method

  1. Add the estimated annual value of benefits and paid leave to the salary you want to replace.
  2. Gross that owner-compensation goal up for your estimated effective tax rate.
  3. Add the annual costs of running the business.
  4. Divide by realistic billable hours—not 2,080 calendar working hours.
This is a planning model, not a tax calculator.

Business structure, deductions, payroll obligations, social insurance, and benefits differ by country and individual situation.

Use market information as a second check

Cost-based pricing tells you whether freelancing supports your plan. It does not guarantee the market will accept the number. Compare it with the value of your outcomes, alternatives available to the client, positioning, experience, and demand.

For project and retainer equivalents, continue with the complete rate planner.