Use Freelancer Budget Prover with your AI.

Validate freelancer budget

Freelancer finances are uniquely brutal. irregular income, no employer benefits, self-employment tax, and the constant pressure to underprice. You must: (1) project REVENUE with utilization. billable hours × rate × utilization rate (60-70%, never 100%). The 30-40% non-billable time is real: proposals, admin, marketing, learning, contract gaps. Hourly × 2,080 is a fantasy, (2) account for ALL COSTS. self-employment tax (15.3%), income tax (bracket-dependent), health insurance ($400-800/mo), liability insurance, capabilities/software, accounting, retirement (no employer match), home office, professional development. Total hidden costs: 35-45% of gross revenue, (3) plan CASH FLOW for irregular income. payment terms (Net-30/60/90), late payment rate (42% per Freelancers Union), seasonal gaps (2 months/year average), illness coverage (zero sick days), 3-6 month emergency fund, (4) calculate PRICING from costs. minimum viable rate = total annual costs ÷ (1 - margin) ÷ billable hours. NOT "what others charge". YOUR costs determine YOUR floor. Value-based pricing for the ceiling, (5) analyze PROFITABILITY on ALL hours. effective hourly = net income ÷ ALL hours worked (billable + non-billable). Scope creep impact: free work hours × hourly rate = lost revenue. If rejected, your freelancer math will lead to burnout or insolvency. Structured reflection capability for realistic freelancer financial planning. forces revenue modeling with utilization rates, complete cost accounting, cash flow planning for irregular income, cost-plus pricing calculation, and profitability analysis on ALL hours worked. Catches Revenue Fantasy (hourly rate × 2,080 hours. the fantasy that ignores utilization. A freelancer billing $150/hr at 65% utilization earns $101,400, not $312,000. The 35% non-billable time includes proposals, admin, accounting, marketing, learning, and the 2-week gaps between contracts that nobody plans for), Invisible Costs (forgetting that self-employment tax is 15.3%, health insurance is $400-800/month, liability insurance is $1,200/year, capabilities are $3,600/year, accounting is $2,400/year, retirement contributions have no employer match. freelancers pay the employer AND employee share of everything. Total hidden costs: 35-45% of gross revenue), Cash Flow Blindness (ignoring that 42% of invoices are paid late per Freelancers Union, Net-60 means you work in January and get paid in March, seasonal gaps mean 2 months/year with zero income, and illness means zero revenue with no sick days), Underpricing (using "market rate" instead of calculating the minimum viable rate. total costs ÷ (1 - margin) ÷ billable hours. "What others charge" ignores YOUR costs), and Scope Creep Exposure (undefined deliverables, unlimited revisions, and "quick favors". scope creep costs the average freelancer 15-20% of billable revenue per year. Every hour of free work is an hour you cannot bill). Call once per freelancer financial plan or pricing decision