FFreelanceGuide

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Salary ⇄ freelance rate, both ways

A $95k salary is not a $46/hour freelance gig — the employer was quietly paying your benefits, half your payroll tax, and your time off. This converts a salary into the rate that truly matches it, and converts a rate back into the salary it's worth.

Direction
Enter a job's salary; get the freelance hourly rate that makes you whole. Enter your freelance hourly rate; get the salaried job it's equivalent to.
Your numbers
$
Annual base pay of the job you're comparing against — before bonus and benefits.
25%
Health insurance, 401(k) match, the employer half of payroll tax, paid leave — what a job is worth on top of salary. Commonly 20–35%.
$
Software, hardware, insurance, accountant, coworking — the cost of running you as a business.
6 weeks
Vacation + holidays + sick days. Employees get these paid; freelancers fund them out of the rate.
25 hrs/wk
A 40-hour week rarely has 40 billable hours. Selling, admin, and email aren't billable.
28%
Income tax + self-employment tax combined. Many US freelancers land near 25–35%.
10%
A cushion for slow months, late payers, and profit. On the rate side it's added; on the salary side it's stripped back out.
Equivalent freelance rate
$163/ hour

Billable capacity
Salary you're replacing
+ Benefits & employer tax
All-in value to replace
+ Self-employment tax
+ Business expenses
+ Safety margin
Revenue you must bill
÷ billable hours =

Nothing you type leaves your browser. This isn't tax or legal advice — talk to an accountant about your situation.

How to convert a salary into a freelance rate (and back)

The naïve conversion — divide a salary by 2,080 hours, or multiply a rate by 2,080 — is wrong in both directions, and it's wrong by a lot. As an employee you never saw the full cost of employing you: the company paid the employer half of Social Security and Medicare, your health insurance, any retirement match, and every paid day off. As a freelancer, all of that comes out of the rate you charge, and you only bill a fraction of the hours you actually work. A clean conversion has to account for every one of those gaps.

This tool runs in two directions off the same model. Pick Salary → rate when you're weighing an offer or pricing yourself to match a job you'd otherwise take. Pick Rate → salary when you already freelance and want to know what a "real job" would have to pay to match what you've built.

Salary → freelance rate

First, the salary is grossed up into the all-in value of the job — salary plus the benefits-and-employer-tax load — because that's the total you have to replace to come out even. That all-in figure becomes your freelance take-home goal, which is then grossed up again for self-employment tax, expanded for business expenses and a safety margin, and finally divided across the hours you can actually bill:

all-in value = salary × (1 + benefits load)
pre-tax need = all-in value ÷ (1 − tax rate)
revenue need = (pre-tax need + expenses) × (1 + margin)
hourly rate = revenue need ÷ (working weeks × billable hours)

Freelance rate → salary

The reverse runs the exact same chain backward. Your billed revenue is peeled back down — strip the safety margin, subtract expenses, take out self-employment tax — to reach your true all-in take-home. Then the benefits load is removed to land on the base salary a job would need to offer to match it:

revenue = rate × working weeks × billable hours
pre-tax profit = revenue ÷ (1 + margin) − expenses
all-in net = pre-tax profit × (1 − tax rate)
salary = all-in net ÷ (1 + benefits load)

Because the two formulas are exact inverses, the converter round-trips cleanly: convert a salary to a rate, hit Swap ⇄, and you land back on the salary you started with. The two inputs people get most wrong are billable hours and the benefits load. Drag the billable-hours slider down toward a realistic 20–25 and watch the equivalent rate jump — that gap is exactly why freelancers who "charge what they made hourly at their job" end up earning far less.

When to use this versus the rate calculator

If you already know the take-home you want and just need a number to charge, the freelance rate calculator is the more direct tool. Use this converter when the comparison is the point: deciding between a job offer and going independent, sanity-checking whether your current rate beats a salaried alternative, or explaining to a client or a recruiter why your rate isn't "just" your old salary divided by 2,080.

Frequently asked questions

Why isn't a salary just divided by 2,080 hours?

Because 2,080 is the hours you're paid as an employee, not the hours you can bill as a freelancer, and a salary leaves out everything the employer paid on top of it. Between unbillable admin time, unpaid time off, self-employment tax, business expenses, and the benefits an employer used to cover, a straight salary ÷ 2,080 understates the equivalent freelance rate by roughly half for most people.

What should I put for the benefits & employer tax load?

It's the value of everything a job gives you beyond base pay, as a percentage of salary: health insurance, any 401(k) match, the employer's half of Social Security and Medicare (~7.65%), and paid time off. For a typical US salaried role that totals somewhere around 20–35%. If a job had unusually rich benefits, push it higher; if it was bare-bones, lower.

Are the two directions exact opposites of each other?

Yes. The salary→rate and rate→salary formulas are mathematical inverses built on the same inputs, so converting one way and then back returns your original number. The Swap ⇄ button uses this: it flips the direction and seeds the other field with the result you were just looking at.

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 and direction you chose.

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