How much more should a freelancer earn than an employee?

Last updated: July 2026

Ask this question in a freelancer forum and you will get answers from "the same, freedom is the payment" to "triple it or stay employed". Both extremes are guesses.

In short: a freelancer should earn the matching rate computed from the full salary package, plus a security premium of about 15% that is a decision, not arithmetic. The free Freelance vs Salary Calculator runs both.

The honest answer has two parts: a matching part you can calculate, and a premium part you can decide.

Part one: the match, which is not negotiable

Before any premium, the freelance income must first replace what the salary actually delivers. That is more than the payslip. It is the take-home pay, plus every benefit the employer pays for silently: pension contributions, insurance, equipment, paid vacation.

With this calculator's defaults, a $3,500 monthly salary with $300 of benefits needs about $40/h to replace, billed at realistic freelance hours. Anything below the match is a pay cut with extra paperwork. This part is arithmetic, and arithmetic does not care about your confidence level.

Match first, premium second

A $3,500/month salary with $300 in benefits converts to a matching rate of about $40/h. The naive division (salary ÷ 2,080 hours) says $20/h. The difference is everything the payslip never shows.

Part two: the premium, which is a decision

Once matched, the two incomes still are not equal, because one of them is guaranteed and the other is not. A salary arrives during slow months. Freelance income does not. A salary comes with a notice period, while a client can disappear in a week.

That difference has a price, and this calculator sets it at 15% above the matching rate as a published default. Think of it as insurance you sell to yourself. Some freelancers charge more premium because their pipeline is young and fragile. Some charge less because they have two years of runway and repeat clients. The number is yours to adjust; its existence is not optional.

See both numbers for your situation

What this salary is worth per hour

info

$46/h

To beat the job (+15% security)The matching rate plus a premium for what a salary gives and an invoice doesn't.

$40/h

To match the full packageSame take-home as the job, benefits included, after freelance tax and costs.

$20/h

The naive math (salary ÷ 2,080h)Assumes you bill every working hour of the year. Nobody does.

Using standard assumptions for freelance tax (25%) and business costs. Set your real numbers →

Gross Salary

$3,500

the job offer, before tax

Benefits Value

$300

employer-paid extras, monthly

Payslip Tax

30 %

gross to net, as an employee

Drag any blue number to adjust (click it to type). Your inputs carry over to the full tool. Access full tool

Three bars. The match, the match plus premium, and the naive division that underprices half the freelancers on the internet. The gap between the first and the last bar is the reason this tool exists.

Matching your old salary is not a win. It is the same money with more risk.

What the premium is not

The premium is not greed, and it helps to be able to say why in a client conversation. An employer pays roughly 1.25 to 1.4 times the gross salary to employ someone, once payroll charges and overhead are counted.

A freelancer at match-plus-15% usually still costs the client less than an employee doing the same work, with none of the long-term commitment.

You are not expensive. You are visible.

What does your offer really convert to?

Type the salary and its benefits. The calculator shows the matching rate, the premium, and the naive number to avoid.

Run the comparisonarrow_forward

Free, no signup. For real.