Money math for people
who work for themselves

Start here if you're new to freelancing

Three numbers matter more than the rest, and they build on each other.

What you'll owe. Freelance income arrives untaxed, which means the bill lands later and lands whole. Self-employment tax alone runs 15.3% before income tax enters the picture. Knowing that figure early is the difference between a manageable spring and a bad one.

What to set aside. Once you know the annual number, the practical move is moving a percentage of every payment into a separate account the day it arrives, and paying the IRS four times a year rather than once in April.

What to charge. Rates that look generous next to a salary often aren't, once unpaid time and self-funded benefits are counted. Working backward from the income you actually want is more reliable than pricing against what other people quote.

Common questions