Skip to main content
VeloxCalc

Freelance Hourly Rate & Invoice Calculator

Calculate true take-home hourly pay, annual gross/net, invoice markup and billing rate for remote freelancers & LATAM self-employed (Brazil MEI, Mexico SAT, Colombia DIAN).

USD
h
wk
wk
%
%
$
$
%
Calculation direction

Result

Net monthly (take home)

$7,812.00

Gross annual income
$163,200.00
Gross monthly income
$13,600.00
Net annual (after tax + costs)
$93,744.00
Net monthly (take home)
$7,812.00
Effective hourly (net, all costs deducted)
$48.83
Gross take-home per hour (before deductions)
$85.00
Suggested invoice rate with markup
$102.00
Total yearly income tax
$32,736.00
Yearly social security
$22,320.00
Yearly business + extra costs
$14,400.00

Calculated with engine v1.0.0

Working 48 weeks/year: Gross $163,200.00 → Net monthly $7,812.00. Suggested invoicing rate: $102.00/h.

Gross annual income$163,200.00
Gross monthly income$13,600.00
Net annual (after tax + costs)$93,744.00
Net monthly (take home)$7,812.00
Effective hourly (net, all costs deducted)$48.83
Gross take-home per hour (before deductions)$85.00

$7,812.00 Suggested invoice rate with markup: $102.00/h

Freelance Hourly Calculator: Find Your True Billing Rate

This calculator is built for remote workers, independent contractors and self-employed professionals across Latin America (Brazil, Mexico, Colombia, Argentina, Chile) and global remote markets. It accounts for taxes, social security, unpaid time off, overhead, invoice markup and non-billable hours so the rate you charge actually produces the net monthly salary you want.

True Hourly Rate = (Target Annual Net Salary + Annual Overhead + Tax & Social Security) / Billable Hours Per Year
Invoice Rate = True Hourly Rate × (1 + Markup Percentage)

If your target is $5,000 net per month as a remote developer, charging $50/h without doing the math will leave you short. Once you factor in MEI/SAT/DIAN contributions, vacation, holidays, sick days, admin time and the 30–40 % of weeks that are non-billable (sales, calls, proposals, learning), the realistic total is closer to 1,100–1,400 billable hours per year, not 2,080.

Why Your Per-Hour Rate Matters

Most freelancers pick a rate by copying peers or dividing a former full-time salary by 160 hours and adding 10 %. That method systematically underbills. Salaried employees receive paid time off, employer-side tax contributions, health insurance, equipment, training and infrastructure — all of which you must fund yourself.

Gross vs. Net: The Freelancer's Gap

A São Paulo developer billing R$ 180/h (~$35) for 160 hours appears to earn R$ 28,800 gross. Under MEI or Simples Nacional, roughly 11–22 % goes to tax and INSS, 5 % to health insurance, 8–10 % to tools and home-office, and 15 % should be set aside as vacation and 13th salary provisions. That $35/h gross collapses to roughly $18–22/h net — a 37–49 % gap.

How to Use This Calculator: 4 Input Rules

  1. Enter your target net monthly income in local currency (BRL, MXN, COP, ARS, USD) — the amount you want after all deductions.
  2. Choose your jurisdiction preset (Brazil MEI, Mexico SAT Persona Física, Colombia DIAN Régimen Simplificado, US LLC / Sole Proprietor, or Custom) to pre-fill the correct tax and social security percentages.
  3. Set your billable hours per week and number of unpaid weeks off (vacation + holidays + sick buffer).
  4. Add your annual overhead (software, internet, coworking, accountant, health insurance, laptop amortization) and your profit markup (typically 15–30 % for solo, 30–50 % for agency-style billing).

Tax & Social Security: Brazil, Mexico, Colombia

Brazil MEI (R$ 90k/year cap) charges flat DAS (~R$ 71–77, 2026) covering INSS, ISS, ICMS; above MEI use Simples Nacional (6–22 %). In Mexico, SAT Persona Física uses marginal brackets (~1.92–35 %, 2026) + IMSS ~10–11 %. Colombia DIAN Régimen Simplificado: 4.41–13.68 %. Confirm brackets with your accountant.

Invoice Markup: Protect Your Profit Margin

Markup is the buffer that keeps your business alive. A 25 % markup covers scope creep, late payments, unpaid revisions, dry spells between clients and churn risk. If you bill through an agency or talent platform taking 10–20 %, stack your markup on top of that fee.

Brazil MEI, target R$ 15,000 net / month (~$2,900):

  • Annual net incl. 13th + vacation: R$ 225,000 · Overhead: ~R$ 18,800
  • Effective tax & social: ~22 % · 1,176 billable hrs/year
  • True cost: R$ 250–260/hr · 25 % markup → invoice R$ 315–325/hr (~$60–62 USD)

The naive "R$ 15,000 ÷ 160 = R$ 94/hr" leaves you 62 % below break-even.

Sources

  1. IRS Topic 704 - Self-Employment Tax — https://www.irs.gov/taxtopics/tc704
  2. Receita Federal do Brasil - Microempreendedor Individual (MEI) — https://www.gov.br/empresas-e-negocios/pt-br/empreendedor/quero-ser-mei
  3. OECD - Classification of Workers — https://www.oecd.org/employment/Classification-of-workers.pdf
  4. US DOL Self-Employed Center — https://www.dol.gov/agencies/whd/self-employed

YMYL Disclaimer

This tool provides general educational guidance and illustrative calculations for freelance and self-employed billing scenarios. It is not financial, tax, legal, accounting or business advice. Tax rates, social security brackets, MEI/SAT/DIAN thresholds, labor regulations and currency values change frequently and vary by jurisdiction, filing status, revenue band, activity code and individual circumstances. Run your numbers by a licensed local accountant (Contador, CPA, Contador Público) or tax advisor before setting client rates, invoicing, filing returns or making business decisions. The calculator uses reasonable default assumptions; your actual liability or take-home pay may differ materially.

Related calculators