Most freelancers undercharge because they divide salary by 2,080 hours — ignoring taxes, expenses, time off, and non-billable hours. This calculates the rate you actually need. No signup.
Bonsai handles freelance contracts, invoicing and taxes in one place, so you charge what you're worth and actually collect it. Free trial.
Try Bonsai free →Because 2,080 assumes every working hour is paid. Freelancers spend a big chunk of time on admin, sales and unpaid work, take time off, and must cover their own taxes, insurance and expenses. Dividing salary by 2,080 leaves you badly undercharging — often by 40–60%.
Be realistic: most full-time freelancers bill 20–30 hours a week, not 40. The rest goes to finding clients, admin, and breaks. Lowering this number raises your required rate — which is correct.
It varies by country and income, but 25–35% is a common set-aside for self-employment tax plus benefits you now fund yourself (health, retirement, insurance). Check your local rate.
Yes — free, no signup, nothing stored. It all runs in your browser.