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Freelance Tax & Runway Calculator

Plan your freelance business with absolute precision using our free premium calculator. Compute your target hourly rate, organize your taxes and business expenses, and simulate 12-month runway scenarios entirely for free.

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Understanding Your Freelance Financials

What is Runway?

Runway is the number of months your business can survive before running completely out of money. Financial experts recommend maintaining at least 6 to 12 months of living expenses in an accessible cash fund to withstand quiet client spells.

The Solopreneur Tax Hack

Unlike traditional employees, freelancers can write off legitimate business expenses—such as laptop purchases, software subscriptions, office spaces, and utilities. This directly lowers your taxable gross income and saves hundreds or thousands in taxes.

Defining Billable Hours

Do not assume a 40-hour billable work week! Most solo creators spend 30-40% of their time on admin work, marketing, and client pitching. For accuracy, budget for 20 to 25 billable hours a week, and leave 4 to 6 weeks unbilled for rest and sickness.

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The Solopreneur Guide to Rates, Taxes, & Financial Runways

How to Determine Your Minimum Billable Rate

Many new freelancers simply match their previous salary hourly rate—a trap that leads to severe underpayment. As a contractor, you must factor in unpaid holidays, sick leave, healthcare overhead, software subscriptions, non-billable administrative time, and local self-employment taxes. Our calculator models your personal financial needs to reveal what your hourly rate *must* be to maintain your desired lifestyle safely.

Understanding Runway and Tax Reserves

Your financial runway is the number of months your current savings can sustain your business if your income drops to zero. Maintaining at least a 6-month runway is recommended for peace of mind. Additionally, separating your tax liability from every incoming invoice prevents stressful year-end IRS or local tax surprises.

Frequently Asked Questions (FAQ)

How should I account for business expenses?

Record all deductible operational costs (laptops, desk rent, internet, SaaS products). This lowers your net taxable income and can save you thousands of dollars depending on your tax jurisdiction.

What is a safe emergency tax savings percentage?

We recommend reserving between 25% to 35% of your gross freelance income specifically for taxes. This ensures you can cover local income and self-employment taxes easily.

Is my financial data uploaded or saved online?

No. All calculations are executed locally in your browser context. No numbers, expenses, or income details are stored anywhere outside your browser's private application memory.