How we worked it out
Updated as you change the numbers.
- Revenue needed = take-home ÷ (1 − tax rate) + expenses. Rate = revenue ÷ billable hours a year.
Method and assumptions
Self-employed people pay both halves of Social Security and Medicare (15.3% up to the wage base) on top of income tax, which is why the tax rate is usually higher than an employee’s.
Questions
What should I charge to take home $80,000?
About $107 an hour with $12,000 of expenses, a 28% tax rate and 25 billable hours a week for 46 weeks.
Sources
Method and figures checked on . Every worked answer on this page is covered by an automated test. Found a mistake? Tell us.