Freelance Reality Check Calculator

Don't let hidden costs eat your margin. Calculate exactly how much you're actually taking home per hour after taxes and overhead.

Project Details
Enter the numbers to see your real profit.
The Reality Check
What you actually take home.

Actual Net Profit

₹35,000

Excellent Margin (70.0% Margin)

Effective Hourly

₹875/hr

Total Deductions

₹15,000

Pro Tip: Always include 15-20% extra buffer time for revisions and unexpected client calls. If your effective hourly rate here is lower than your target, you need to raise your price!

Why Freelancers Underprice Their Services

It's easy to look at a ₹50,000 project fee and think it's a great deal. However, traditional hourly calculations often ignore the reality of running a freelance business. When you account for non-billable hours (like client communication and administrative tasks), software subscriptions, and self-employment taxes, your actual take-home pay is significantly lower.

How to Price Freelance Projects Correctly

  • Factor in Non-Billable Time: Add at least 20% to your estimated hours for "scope creep" and communication.
  • Account for Taxes Upfront: Depending on your jurisdiction (e.g., Section 44ADA in India, or 1099 taxes in the US), set aside a realistic tax percentage immediately.
  • Include Direct Expenses: If a project requires premium stock photos, a specific software subscription, or hiring a subcontractor, that comes out of your bottom line.

Use our free Freelance Real Hourly Rate Calculator before sending your next proposal to ensure you are meeting your baseline financial goals.