Find your absolute survival line. This free freelance break-even calculator shows you the exact minimum monthly revenue you need to cover your business overhead, personal living expenses, and self-employment taxes so your business doesn't lose money.
You must generate this amount every month to not lose money.
Stop using messy spreadsheets. Track your break-even point, expenses, and monthly profit instantly with our pre-built Notion Dashboard.
In the freelance world, your break-even point is the exact amount of gross revenue you must generate every month to cover your personal living expenses, your business overhead, and your tax liabilities.
If you earn exactly this amount, your bank account remains flat. Below this number, your freelance business is actively losing money and sliding into debt. This free freelance pricing tool helps you define your absolute survival baseline so you know exactly what your business must generate to keep you afloat.
Let's look at a real scenario. Sarah needs $4,000 a month to pay her personal bills and $500 to run her design business (software, internet, domains). She sets her tax rate at 25%.
Base Expenses = $4,000 + $500 = $4,500 Break-Even Revenue = $4,500 / (1 - 0.25) = $6,000/month If Sarah prices her projects based on a $4,500 goal, she will find herself unable to pay her taxes at the end of the year. She must generate $6,000 in gross revenue just to survive.
Knowing your minimum viable revenue is the first step in building a sustainable solo business. This tool is perfect for:
Your freelance break-even point is the exact amount of gross revenue you need to generate each month to pay for your personal living expenses, business overhead (software, hosting, insurance), and your self-employment taxes. It represents your absolute survival baseline.
To calculate your break-even number, add your total monthly personal and business expenses. Then, divide that number by (1 - your estimated tax rate). For example, if your expenses are $3,000 and your tax rate is 25%, your break-even is $3,000 / 0.75 = $4,000.
Most beginners fail to account for the "Tax Gross-Up." You cannot simply earn your expenses; you must earn your expenses plus the tax you will owe on that income. They also often forget to factor in transaction fees (like Stripe's 2.9%), healthcare costs, and software subscriptions.