Salary to freelance rate, by salary
What freelance rate replaces a $45,000 salary?
A $45,000 salary with typical benefits is worth about $50 per hour of freelance work, once the employer's hidden spend and real billable time enter the math.
The breakdown
- What freelance rate replaces a $45,000 salary?
- $50
- True employer cost (salary + benefits)
- $57,443
- Hidden benefits value
- $12,443
- Annual 1099 revenue to match
- $57,443
- Billable hours assumed per year
- 1,150
How the assumptions move it
| 20 h/week billable | 25 h/week billable | 30 h/week billable | |
|---|---|---|---|
| Equivalent hourly rate | $62 | $50 | $42 |
Run your own numbers in the interactive calculator: W-2 vs 1099 rate calculator
The formula
True cost = salary + employer FICA + 12 x health premium + match. Rate = true cost / (billable hours x weeks).
Assumptions on this page
Assumes employer-paid health at $600/month, a 4% retirement match, employer FICA at 7.65%, and 46 working weeks. The center column (25 billable hours) is the headline answer.