Calculator
Include software, insurance, home office, etc.
Salary Equivalent
$85,845
Compared to full-time + 11.5% Super
Weekly Take-Home
$1,299.74
Estimated after tax & medicare
Analysis
Charging $85/hr with your current workload is equivalent to a full-time salary of $85,845 (plus super). This provides a solid foundation for a professional freelance career.
Freelancing offers unparalleled flexibility and the potential for high earnings, but it requires a shift in how you view your 'pay.' Unlike a traditional employee, a freelancer is essentially a small business owner. Your gross income (what you invoice clients) is not your take-home pay. You are responsible for your own taxes, superannuation, insurance, equipment, and 'unbillable' time spent on administration and marketing. This independence requires a high degree of financial discipline and a deep understanding of the Australian business landscape. In Australia, the freelance economy is booming across creative, technical, and professional services. However, many new freelancers fall into the trap of setting an hourly rate that matches their previous salary, only to find themselves earning significantly less after costs. This tool is designed to help you bridge that gap and provide a clear financial roadmap. By estimating your true annual equivalent salary, you can see how your freelance rates compare to full-time employment and ensure you are charging enough to cover your lifestyle, business expenses, and long-term financial security in an increasingly competitive market.
The logic behind our Freelancer Pay Estimator centers on transforming variable weekly billable hours into a stable annual figure. The calculation follows this path: First, we determine your Gross Weekly Revenue by multiplying your Hourly Rate by your Billable Hours Per Week. We then project this over 48 weeks (allowing 4 weeks for 'unpaid' holiday and sick leave, which is standard for Australian comparison). From this Gross Annual Revenue, we subtract your estimated Annual Business Expenses (software, insurance, home office costs). To get to an 'Annual Salary Equivalent,' we also factor in the 11.5% Superannuation Guarantee that an employer would typically pay on top of a salary. The formula is: (Gross Weekly Revenue × 48) - Expenses - (Required Super Contribution). This gives you a 'pre-tax salary' figure that you can directly compare to job advertisements. We then apply standard 2024-25 Australian tax brackets to this net figure to show your estimated weekly take-home pay, providing a realistic view of the cash available for your personal budget.
The biggest mistake freelancers make is assuming a 38-hour billable week. In reality, most successful freelancers spend 25-30% of their time on 'non-billable' tasks like invoicing, pitching, and professional development. If you work 40 hours total, you might only bill 28. Your rate must be high enough to cover those 12 'free' hours.
Self-employed Australians are not legally required to pay themselves super, but failing to do so is a recipe for poverty in retirement. Always factor in an 11.5% 'tax' on your own income to contribute to your super fund. Treat this as a non-negotiable business expense, not an optional extra.
As a freelancer, you have no job security, no redundancy pay, and no paid notice period. Experts recommend adding a 20-30% 'risk premium' to your hourly rate on top of your expense coverage. If a full-time role pays $50/hr, your freelance equivalent should be at least $75-80/hr to account for this lack of stability.
Never mix your personal and freelance finances. Have all client payments go into a dedicated business account. From there, pay yourself a 'salary' into your personal account and keep the rest for tax, super, and business expenses. This makes tax time and budgeting infinitely easier.
Inflation, rising software costs, and your own increasing expertise mean your rates shouldn't stay static. Every three to six months, use this calculator to see if your current billable hours and rates still meet your take-home pay goals. Don't be afraid to raise prices for new clients.
Freelancing is often 'feast or famine.' Use the 'Annual' view in our calculator to see your total expected income, and then divide that by 52 weeks to set your personal budget. This ensures that the high-earning months subsidize the quieter periods when clients are slow to sign off on projects.
Maya left a $90,000 salary to freelance. She charged $70/hr and billed 30 hours a week. Initially, she thought she was earning $109,200 ($70x30x52). However, after using our estimator and factoring in 4 weeks off, $5k in expenses, and super, she realized her equivalent salary was only $84,000. She raised her rate to $85/hr to maintain her previous lifestyle.
David is a DevOps consultant charging $180/hr. He only wants to work 3 days (22.5 hours) a week. Even with $10k in annual expenses and contributing 15% to super, his equivalent salary is over $160,000. This example shows how high-specialization freelancing can trade billable volume for high-value rates and better work-life balance.
Liam works a full-time job and does 10 hours of freelance writing on the side at $50/hr. Because his primary job already covers his 'existence' costs and super, his freelance income feels like a massive boost. However, our calculator helps him see that after his marginal tax rate (32.5% + Medicare), his $500/week actually only puts $327 in his pocket.
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