Calculate what you need to charge to hit your target income after taxes, healthcare, and overhead.
Minimum Hourly Rate = (Desired Take-Home Income / (1 - Tax Rate)) + Overhead Expenses / Total Billable Hours.
Full-time employees receive employer-paid health benefits, paid time off, and matching payroll taxes. Freelancers must pay both halves of self-employment tax and spend roughly 40% of their time on unbilled business management.