Salary to Freelance Rate Converter
A $80,000 salary isn't $38/hr freelance — it's closer to $65/hr. Your employer covers benefits, PTO, and downtime. This converter adds the true cost of employment and divides by your billable hours (not 40/wk) to find the rate that actually matches your salary.
Your freelance equivalent
Why dividing salary by 2,080 is wrong
The classic mistake: $80,000 ÷ 2,080 hours = $38/hr. This ignores three things. First, your employer pays ~25–30% on top of salary in benefits, payroll taxes, and PTO — that's $100,000+ in true cost. Second, you won't bill 40 hours/week; admin, pitching, and learning eat 35–50%. Third, you fund your own vacation, sick days, and dry spells.
Realistic math: $100,000 true cost ÷ ~1,150 billable hours = $87/hr break-even. That's why experienced freelancers quote 2–3× their old "hourly" salary number — it's not greed, it's arithmetic.
Which rate should you actually charge?
Break-even is survival — don't go below it. Target (+20%) is sustainable: it covers taxes, slow months, and reinvestment. Premium (+50%) is where growth happens — savings, better tools, and the ability to say no to bad-fit clients.
New freelancers often start near break-even for the first 2–3 clients (to build proof), then move to target within 6 months. Staying at break-even permanently is just a job with more paperwork.
Frequently asked questions
How do I convert my salary to an hourly freelance rate?
Don't divide by 2,080. Add 25–30% for benefits, then divide by your actual billable hours (typically 50–65% of working hours). The converter above does this: an $80k salary usually means $65–90/hr freelance.
What percentage should I add for benefits?
25–30% covers the typical employer burden: payroll taxes (~8%), health insurance, retirement match, and paid time off. Use 30%+ if you're in a high-cost health insurance market or want generous retirement savings.
How many billable hours do freelancers really work?
Most bill 50–65% of their working hours. The rest goes to pitching, admin, accounting, learning, and downtime. New freelancers are often at 40–50% until their pipeline fills.
Should I charge 2x or 3x my old hourly salary?
2× your naive salary/hour is roughly break-even; 2.5–3× is a healthy target. The multiplier isn't a rule — it falls out of the benefits + billable-hours math. Use the converter for your exact numbers.
Is freelancing worth it vs. a salary?
Financially, yes — if you charge the true equivalent rate. A freelancer at the target rate typically out-earns the salary by 20–40% while controlling their time. The risk is income volatility, which the margin covers.
Price with confidence
Estimates for planning purposes only. Benefits costs and billable ratios vary by person and market. Not financial advice.