Freelancer Budget Calculator
Manage irregular income like a pro. See exactly how much to set aside for taxes, savings, and expenses each month.
Monthly Income
Before taxes and expenses
Helps plan for lean months
Tax Settings
25-30% is typical for most freelancers
Fixed Monthly Expenses
Savings Goals
Your Monthly Budget Breakdown
Enter your income and expenses, then click "Calculate" to see your personalized budget
For groceries, entertainment, dining out, and variable expenses
Visual Breakdown
Freelancer Financial Guide
Understanding Self-Employment Taxes
As a freelancer, you pay both the employee and employer portion of Social Security and Medicare taxes (15.3%), plus your regular income tax.
- Self-employment tax: 15.3%
- Federal income tax: 10-37%
- State tax: 0-13% (varies by state)
- Pay quarterly estimated taxes to avoid penalties
The 50/30/20 Rule for Freelancers
Adapt the classic budgeting rule for irregular income. After setting aside taxes:
- 50% Needs: Rent, utilities, insurance, minimum debt payments
- 30% Wants: Entertainment, dining, hobbies, upgrades
- 20% Savings: Emergency fund, retirement, extra debt payments
Frequently Asked Questions
How much should freelancers save for taxes?
A safe rule of thumb is 25-30% of your gross income. If you're a higher earner (over $100k/year) or live in a high-tax state, consider setting aside 35-40%. It's better to overestimate and get a refund than face a surprise tax bill.
How do I handle months with very low income?
This is why emergency funds are crucial for freelancers. Aim for 6-12 months of expenses saved. In lean months, reduce your savings contributions temporarily but still set aside taxes on whatever you earn.
Should I open separate bank accounts?
Yes! Most successful freelancers use multiple accounts: one for taxes (don't touch this money), one for operating expenses, and one for personal spending. This makes tracking easier and prevents accidentally spending your tax money.
What retirement accounts can freelancers use?
Freelancers have excellent retirement options: Solo 401(k) (up to $66,000/year in 2024), SEP-IRA (up to 25% of net self-employment income), or a Simple IRA. These can significantly reduce your tax burden while building wealth.