Freelance vs Job

A freelance vs job calculator answers a question every aspiring freelancer needs to model: what hourly rate do I need to charge to match my current salary? The answer is usually shocking — to match a $80,000 salary with benefits, most freelancers need to charge $90–120/hour, not $40. The reasons: unbillable hours (admin, sales, learning), self-employment tax, lost benefits (health insurance, retirement match, paid leave), business expenses, and the gap months when work dries up.

Enter your current salary, the value of benefits (health insurance, retirement match, PTO), your target billable hours per week (most freelancers manage 20–25), and your business expenses. The calculator returns the minimum hourly rate you need to charge to match your current take-home, and the rate to actually come out ahead.

A $100/hour freelance rate is not the same as a $200,000 salary. Out of every $100, roughly $30 goes to taxes (income + self-employment), $15 to benefits you'd otherwise get from an employer, $10 to business expenses (software, accountant, equipment), and $20 to unbillable hours (sales, admin, learning). That leaves $25 in your pocket — equivalent to a $50,000 salaried role. Always model the full picture before quoting.