Invoice Calculator

Calculate your desired annual income, add business expenses (software, equipment, insurance, taxes), divide by billable hours per year (typically 1,000-1,500 for full-time freelancers after accounting for non-billable time), and add a 20-30% buffer. For example, $100,000 desired income + $30,000 expenses = $130,000 / 1,200 billable hours = ~$108/hour minimum.

Hourly billing works well for ongoing or undefined-scope work where requirements may change. Project-based (flat-fee) billing is better when the scope is well-defined and you've done similar projects before — it rewards efficiency and gives the client cost certainty. Many freelancers use a hybrid: hourly for discovery/small tasks, project-based for defined deliverables.

This depends on your location and the type of service. In the US, most services are not subject to sales tax (though some states tax specific services). You are responsible for self-employment tax (15.3% for Social Security and Medicare) and income tax on your earnings. Always consult a tax professional about your specific situation and whether you need to collect and remit sales tax.