Freelance pricing

Salary to Freelance Math: Why the Simple Formula Breaks

A plain-English explanation of why salary divided by 2,080 hours underprices freelance work.

A common mistake is dividing a salary by 2,080 working hours and calling that the freelance rate. That math ignores how freelancing actually works.

A salary includes paid time that freelancers usually do not get: holidays, sick days, slow days, admin time, meetings that do not become invoices, and benefits. Freelancers also pay for tools and business operations directly.

If you want a $100,000 salary, the matching freelance business may need more than $100,000 in revenue. It may need enough to cover taxes, expenses, unpaid time, and a buffer for slow months.

This is why the calculator asks for weeks off and billable hours per week. Those inputs are not details. They are the difference between a rate that works on paper and a rate that survives contact with real life.

The goal is not to inflate your price for no reason. The goal is to stop pretending freelance revenue and employee salary are the same kind of number.

Educational planning content only. This is not tax, legal, investment, or financial advice.