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Tool 05 of 07

Break-Even Monthly Income Calculator

What is the absolute minimum you must earn each month to not go backwards? Know your floor before you discount a project or take a slow month.

How to use this calculator
1

Enter all your monthly personal expenses, business costs, and health insurance premiums.

2

Add your monthly savings or retirement target and your effective total tax rate.

3

The minimum monthly gross updates instantly — any month below this, you're burning through savings.

Your monthly costs

Live results
$ /mo

Rent/mortgage, food, utilities, transportation, subscriptions, and personal debt minimums. Everything you personally spend.

$ /mo

Software, tools, cloud services, liability insurance, accounting, home office. These come out of revenue before you pay yourself.

$ /mo

Out-of-pocket premium for health, dental, and vision. ACA marketplace plans typically run $400–$1,200/mo solo.

$ /mo

Monthly contribution to emergency fund, SEP-IRA, Solo 401k, or general savings. A common target is 10–20% of gross.

%

Combined effective rate (SE tax + federal + state). Common range for US freelancers: 28–38%. Use 30% if unsure.

Minimum monthly gross
$—
per month to break even
Annual minimum
—
Minimum hourly rate
—
at 25 billable hrs/wk
Enter your costs above to see your floor.
Of monthly gross
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Frequently asked questions
Why does the calculator divide by (1 - tax rate)?
To pay $1 of after-tax expense, you need to earn more than $1. At a 30% tax rate, you need $1.43 of gross income to keep $1 net. Dividing total after-tax needs by (1 - 0.30) grosses up the amount correctly.
Should I include business expenses in the break-even?
Yes — business expenses come out of revenue before you pay yourself. A $600/mo software bill reduces what you can pay yourself by $600 before taxes. Many freelancers forget this and wonder why they feel underpaid.
How do I handle irregular months?
Break-even is your floor, not your target. In good months you should earn 1.5–2× your break-even to build a buffer for slow months and taxes. The IRS recommends setting aside quarterly estimated taxes — typically 25–30% of each invoice.
What if I have a spouse with income or covered benefits?
If your household income covers your personal expenses, your freelance break-even shrinks significantly — or you only need to cover business expenses and savings targets. Adjust the "personal expenses" field to reflect only your personal share of household costs.