FFreelanceGuide

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How do you pay yourself for time off?

Nobody hands a freelancer paid vacation, holidays, or sick days. Every week you take off earns nothing — so the weeks you do work have to fund it. This sizes your time-off fund and shows the slice of every payment to bank, or the rate uplift that covers it.

Your numbers
$
What you want to earn across the whole year, including the weeks you're off. Use your billings target, or your take-home if you prefer.
4 weeks
Vacation + public holidays + sick days, in weeks. Four weeks (~3 vacation + holidays/sick) is a common, humane target.
Add this to also see the time off as an hourly rate uplift. Leave it blank to skip — the fund and set-aside still work.
Your time-off fund
$4,615/ year

Size your time-off fund
Annual income you want
Weekly income (÷ 52)
× paid weeks off
= Time-off fund
Fund it from your working weeks
Time-off fund
÷ working weeks
= Set aside per working week
So each working week you bill
To live on
+ To bank for time off
= Required weekly billings
Banked share of each payment
Or build it into your rate
Billable hours per week
Hourly with no time off
= Hourly that funds your time off
Raise your rate by
As a percentage

Nothing you type leaves your browser. This is general guidance, not tax or financial advice — talk to a professional about your situation.

Why freelancers have to budget for their own time off

When you have a salaried job, paid time off is invisible money. You take two weeks in the summer, a week at the holidays, and a few sick days, and your paycheck doesn't flinch — your employer quietly spread the cost of those weeks across the year. Freelancing, that safety net is gone. A week you don't work is a week you don't earn, full stop. If you don't plan for it, "taking a vacation" turns into a month of guilt and a thinner bank account, and "getting the flu" becomes a genuine financial event.

The fix is simple once you see it: the weeks you work have to carry the weeks you don't. If you want to take W weeks off, you only have 52 − W working weeks to earn a full year's income — so a slice of every payment needs to go into a time-off fund you draw from while you're away. This calculator sizes that fund and shows you the slice.

weekly income = annual income ÷ 52
time-off fund = weekly income × weeks off
set aside each working week = time-off fund ÷ (52 − weeks off)
banked share of every payment = weeks off ÷ 52

That last line is the one to tape to your monitor. Take four weeks off out of fifty-two and you bank 4 ÷ 52 ≈ 7.7% of everything you're paid; six weeks is 11.5%. It doesn't depend on what you charge — it's pure arithmetic about how much of the year you want to be off.

Set it aside, or build it into your rate — same money

There are two honest ways to cover time off, and they're two views of one number. The first is to set aside a percentage of each invoice into a separate "time-off" savings account and pay yourself from it during your weeks away. The second is to raise your rate so the working weeks generate the whole year's income on their own. The set-aside share (weeks off ÷ 52) and the rate uplift (weeks off ÷ working weeks) come out as slightly different percentages — 7.7% versus 8.3% for four weeks — but they fund the exact same fund. The set-aside is a percentage of the larger, time-off-inclusive total; the uplift is a percentage increase on the smaller "no time off" rate. Use whichever is easier to stick to. Many freelancers do both: price the time off into the rate and sweep a fixed percentage into savings as a backstop.

What counts as "time off"?

Everything you'd want to be paid for but won't be billing during. That's vacation, but also public holidays (the US has around ten), the days you're too sick to work, and — if it applies to you — parental leave or time for jury duty, conferences, and bereavement. Add them up in weeks. Most full-time employees effectively get five to six weeks of paid non-working time once you count holidays and sick days, which is a fair benchmark to aim for so you're not quietly giving yourself a worse deal than a job would.

Frequently asked questions

Should I enter my take-home pay or my total billings?

Either works — the math is the same — as long as you're consistent about what the fund is replacing. If you enter your take-home, the fund is the after-tax money you'll live on during time off. If you enter your billings (total invoiced), the fund is gross and you'll still owe tax on it like any other income. Most people find it easiest to think in take-home: "I want $60,000 in my pocket this year, and four weeks of it should be spent on a beach."

Why is the set-aside percentage different from the rate uplift?

They fund the identical amount; they're just measured against different baselines. The set-aside (weeks off ÷ 52) is a share of your full, time-off-inclusive income — the pie already includes the vacation slice. The rate uplift (weeks off ÷ working weeks) is the increase over a rate that ignored time off entirely, so it's measured against a smaller number and comes out a touch higher. It's the same relationship as markup versus margin: same dollars, different denominator.

Where should the time-off fund actually live?

In a separate, named savings account — ideally a high-yield one — that isn't your day-to-day checking. The whole point is that the money is invisible until you need it, so you don't accidentally spend your July vacation in March. Some freelancers fold time off into a single larger buffer alongside taxes and an emergency fund; others keep a dedicated pot. Keeping it separate makes taking the time off feel allowed, which is half the battle.

Does this replace an emergency fund?

No — they solve different problems. A time-off fund covers planned absences you choose: vacation, holidays, a few sick days. An emergency fund covers the unplanned — a dry spell with no clients, a big late payment, a broken laptop. Size them separately. This tool handles the planned side; the Emergency Fund Calculator handles the rest.

Is my information saved anywhere?

No. Every calculation runs entirely in your browser — nothing you type is sent to a server or stored. The link in your address bar updates so you can bookmark or share a scenario, but that link only contains the numbers you chose.

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