Freelance Profit Calculator

Discover the net amount left after platform fees, a tax estimate, and other expenses, and — if you enter hours — the implied hourly rate. The invoice total is revenue, not profit. This is a planning tool, not tax, legal, or financial advice.

How net freelance profit is calculated

Platform fees and the tax estimate are applied to the project fee (the amount billed), not to the amount left after other deductions. That matches a common way people set money aside: a percentage of the invoice, plus any fixed expenses.

Net profit = Project fee − (Project fee × platform fee %) − (Project fee × tax %) − Other expenses. Net margin % = (Net profit ÷ Project fee) × 100. Hourly rate = Net profit ÷ Hours.

How to use the Freelance Profit Calculator

Start with the total amount you bill the client. Do not subtract anything yet.
Add a platform fee percentage if a marketplace or payment platform takes a cut. Common figures people use as a starting point are around 10% on some platforms and 20% on others, or a payment-processor rate such as about 2.9% plus a fixed fee — enter the percentage that applies to you. Leave the field blank for 0%.
Add a tax estimate percentage if you want to set a portion of the invoice aside. Self-employment tax in the United States is often discussed around 15.3% before income tax; many people plan with a higher combined estimate. This calculator does not file a return or tell you what you owe.
Enter other expenses such as software or assets. Leave hours blank if you only want the net amount; fill them in to see the implied hourly rate.

Practical examples

A $1,000 project after typical planning deductions

Fee 1,000, platform fee 20% (200), tax estimate 25% (250), and 50 in other expenses. Net profit: 1,000 − 200 − 250 − 50 = 500. Net margin: (500 ÷ 1,000) × 100 = 50%. For 20 hours, the hourly rate is 500 ÷ 20 = 25.

Fees and tax only, no hours

A fee of 200 with a 10% platform fee and a 10% tax estimate, and no other expenses, leaves 200 − 20 − 20 = 160. The hourly rate is omitted when hours are blank.

When to use this calculator

Pricing a project so the amount you keep, after platform costs and a tax set-aside, still meets your target.
Checking whether a “good” invoice still looks acceptable once fees and expenses are subtracted.

Common mistakes

Treating the invoice total as take-home pay. Revenue and profit are different figures.
Applying the tax percentage to the amount after the platform fee when you intended to set aside a percentage of the gross invoice — or the reverse. This tool always applies both percentages to the project fee.

Frequently asked questions

Are the example platform and tax rates what I will actually pay?

No. Figures such as a 20% marketplace commission or a 25% tax estimate are examples for planning. Your contract, platform, and tax position may be different. Check the current rates that apply to you.

Can the net amount be negative?

Yes. If fees and expenses add up to more than the project fee, the result is a loss. The calculator shows that amount instead of hiding it.

Freelance Profit Calculator