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//// Business · Freelance

Freelance Project Profitability

Most freelancers underprice because they forget overhead and revision hours. Enter your fee, costs, and tax rate to see your true net margin and whether the project is actually worth taking.

Corp Tax Rate21%
SE Threshold$400
FICA Cap 2024$168,600

Project Details

Billing model
Tax profile

Great

Strong project economics. Prioritize this type of work and build your pipeline around it.

50.0%

net margin

Gross Revenue
$5,000
Gross Profit
$4,250
85.0% margin
Net Profit (After Tax)
$2,502
50.0% net margin
Net Hourly Rate
$56.86/hr
44 total hrs incl. revisions

Cost Breakdown

Direct costs$250
Overhead (allocated)$500
Tax liability$1,748
Net profit$2,502

Effective hourly (before tax)

$113.64/hr

Effective tax rate

41.1%

Break-Even Thresholds

Minimum fee to break even

$1,274

After direct costs, overhead & taxes

Minimum hourly to break even

$28.95/hr

Over 44 hours total

Fee covers all costs and taxes with $2,502 net profit remaining.