Freelancer Stability Flow
Set a defensible hourly rate and cash buffer target for irregular freelance income.
Get required rate, monthly gross target, and runway safety check.
Why this flow matters
Freelancers consistently underprice because they think in employee terms - gross salary divided by 2080 hours. That ignores tax, overhead, unpaid work, and irregular income. This flow gives you the rate that actually clears your goal after the system takes its cut.
Your diagnosis
Buffer is 1.5 months - vulnerable.
- SoonReach 3 months of buffer before any income gap
Lets you turn down bad-fit clients.
- LaterMove to project pricing once your hourly is known - captures upside
Your inputs
Edit any value - the diagnosis above updates instantly.
How the math works
The exact rules and formulas this flow applies - no black box.
- 1.Gross needed = (target take-home + overhead) / (1 - tax rate). Floors the divisor at 0.05 to prevent blow-up.
- 2.Required hourly rate = gross needed / billable hours per month (typically 60-70% of total work hours).
- 3.Buffer runway = current cash / (target take-home + overhead).
How to read your result
- Required hourly rate higher than market: you need to raise your rate, find premium clients, or reduce overhead.
- Buffer under 3 months: you are one missed invoice from trouble. Build buffer before raising rates further.
- Billable hours target above 140/month: unrealistic long-term. You will burn out or quality drops.
Common questions
Why use 120 billable hours instead of 160?
Sales calls, admin, scope creep, and rest are unbillable. Anyone billing 160 hours/month is either lying or subsidizing themselves with sleep.
What goes in overhead?
Software, equipment, professional fees, health insurance (in the US), and any business expense not paid by the client.
Should I quote project rates instead of hourly?
Yes for established skills - clients prefer it and you capture upside. Use the hourly rate only as your private floor.