What hourly rate replaces a salary
Contracting is not salary ÷ 2,000 hours. Cover unpaid time, expenses, and the tax you now pay yourself.
To replace $70,000 salary with 1,200 billable hours and $2,000 monthly overhead, you need about $78 an hour, not $35.
The number you need before you pay
The freelance rate vs salary is for this decision, not a definition. To replace $70,000 salary with 1,200 billable hours and $2,000 monthly overhead, you need about $78 an hour, not $35.
Enter Monthly Expenses, Desired Monthly Profit, Working Hours per Week, Billable Hours Percentage. The page returns Hourly Rate, Daily Rate (8 hours), Required Monthly Revenue. Nothing is stored unless you copy it.
What to enter
Use the real quote, bill, or salary — not a round number you wish were true. If a field is a rate, use the one on the offer, not last month’s headline average.
The next check
After this number, run best calculators before you accept a job offer, best salary calculator, how much tax on a raise. The cluster page is best calculators before you accept a job offer.
Frequently asked questions
How do I convert a salary to a freelance hourly rate?
Add profit and expenses, then divide by realistic billable hours — often 20–25 hours a week, not 40.
Why is the freelance rate so much higher than salary ÷ 2,000?
You are unpaid between contracts, you buy benefits, and you bill fewer hours than you work.
What hourly rate replaces a salary is part of the Finance cluster on Qalculators. Use the related tools below to run the numbers instead of estimating by hand.
Results depend on the values you enter. Treat them as planning estimates and confirm important decisions with a professional when needed.