Freelancer Profit Calculator
See your real net profit and effective hourly rate after expenses, fees, and a tax reserve.
Your inputs
This looks at revenue you've already earned (or expect to), unlike the Freelancer Project Pricing Calculator, which works backward from costs to a quote before the work starts.
Estimates only. Figures are indicative and do not constitute financial advice.
About the Freelancer Profit Calculator
Freelancers often look at money hitting their bank account and call that "profit," without netting out software subscriptions, payment gateway fees, and the tax bill that's coming later — this calculator shows your real net profit and, just as importantly, your effective hourly rate once everything is properly accounted for.
Enter the revenue you earned over a period along with the hours it took, your software and outsourcing costs, payment/platform fees (which quietly eat 2-5% on many freelance platforms), other expenses, and a tax reserve percentage. The result is your actual take-home profit and — often the most eye-opening number — your effective hourly rate, which is frequently lower than the headline rate you thought you were charging once every cost is subtracted. This is different from our Freelancer Project Pricing Calculator, which works forward from a quote before the work starts; this one looks backward at what you actually made.
How to use this calculator
- Enter your revenue earned and hours worked for the period.
- Enter software/outsourcing costs and payment fees.
- Enter other expenses and your tax reserve percentage.
- See your net profit, effective hourly rate, and profit margin.
Frequently asked questions
›Why is my effective hourly rate lower than my quoted rate?
Your quoted rate is usually gross, before software costs, payment fees, other expenses, and tax reserve are subtracted — the effective rate here reflects what you actually keep per hour worked, which is a more honest number to track over time.
›How much should I reserve for tax as a freelancer?
It depends on your total annual income and whether you use presumptive taxation (44ADA) or actual expenses, but many freelancers reserve 15-25% of profit as a starting estimate — check our Presumptive Tax Calculator for a more precise figure based on your income level.
›Should I track this per project or per month?
Either works — per-project tracking helps you see which clients or project types are actually most profitable per hour, while monthly tracking gives you a clearer view of overall freelance income for budgeting and tax planning.
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Read the full guide
Your Real Effective Hourly Rate After Fees, Expenses, and Tax