Freelancer Net Worth Calculator
Calculate net worth growth for freelancers with variable income, taxes, business expenses, and investment returns.
Inputs
Starting net worth (assets minus liabilities)
Lowest expected monthly income
Highest expected monthly income
Monthly personal living costs
Monthly business-related costs
Combined income and self-employment tax rate
Expected annual investment return
Projection time horizon
How to Use These Results
- Model income volatility: Adjust the min/max income range to see how income variability affects long-term wealth. The calculator uses the average, which helps account for fluctuations.
- Optimize business expenses: Since business expenses are tax-deductible, increasing them can reduce taxes but also reduce savings. Find the balance that maximizes after-tax income.
- Plan for tax efficiency: Freelancers often pay self-employment tax plus income tax. Use this calculator to understand the impact of different tax rates and plan accordingly.
Frequently Asked Questions
How do I handle variable income as a freelancer?
Enter your minimum and maximum monthly income to calculate an average. The calculator uses this average for projections, which helps account for income volatility while providing realistic estimates.
Are business expenses tax deductible?
Yes, business expenses are typically tax-deductible for freelancers. This calculator accounts for this by calculating taxes on your income after deducting business expenses.
What tax rate should freelancers use?
Freelancers often pay self-employment tax (15.3%) plus income tax. Total rates typically range from 20-35% depending on income level and deductions. Consult a tax professional for your specific situation.
How can freelancers build wealth with variable income?
Build an emergency fund first (3-6 months expenses), then invest consistently. During high-income months, save more. During low months, maintain minimum savings. Consistency over time matters more than monthly variability.