Rex says
Money math without the spreadsheet headache. Plug in your numbers and I'll show you exactly where the dollars land.
Try a scenario
Click to load — tweak from there.Inputs
Result
Required annual invoicing
$117,111
Pre-tax income needed
$111,111
Estimated total tax
$31,111
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How to use this
- 1Enter target net (take-home) income ($).
- 2Enter effective tax rate (income + self-employment) (%).
- 3Enter annual business expenses ($).
- 4Read your required annual invoicing on the right — it updates as you type.
- 5Hit Share to keep the scenario or send it to someone.
About this calculator
Self-employed and contractor income needs to cover not just your target take-home pay but also self-employment/income taxes and business expenses that come out before you see a dollar. This calculator grosses up your target net income by your effective tax rate and adds back business expenses to find your required invoicing total.
Worked example
Using the values the calculator loads with:
Inputs
- Target net (take-home) income: 80000 $
- Effective tax rate (income + self-employment): 28 %
- Annual business expenses: 6000 $
Results
- Required annual invoicing: $117,111
- Pre-tax income needed: $111,111
- Estimated total tax: $31,111
What each field means
Inputs
- Target net (take-home) income ($)
- The target net (take-home) income used in the calculation, measured in $. Starts at 80000 $ so you have a working example on load.
- Effective tax rate (income + self-employment) (%)
- The effective tax rate (income + self-employment) used in the calculation, measured in %. Starts at 28 % so you have a working example on load. Accepted range: 0–50 %.
- Annual business expenses ($)
- The annual business expenses used in the calculation, measured in $. Starts at 6000 $ so you have a working example on load.
Results
- Required annual invoicing
- Returned as a money amount in US dollars and shown as the headline result. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Pre-tax income needed
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Estimated total tax
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
FAQ
How much do I need to invoice to earn a target salary?
To net $80,000 after a 28% effective tax rate and $6,000 in business expenses, you need to invoice about $117,111 for the year.
Why is self-employment tax rate higher than a regular employee's?
As a self-employed contractor you pay both the employer and employee share of Social Security and Medicare (15.3% combined) before income tax, versus an employee who only pays the 7.65% employee half, which is why effective rates for the self-employed often run higher.
Should quarterly estimated tax payments factor in here?
This calculator gives the annual total; divide the estimated total tax by four (adjusted for income timing) to plan your quarterly estimated tax payments to the IRS and state, due each quarter to avoid underpayment penalties.
Do business expenses reduce my tax bill too?
Yes, legitimate business expenses are deducted before taxable income is calculated in reality; this simplified model adds them back on top of the tax gross-up for a conservative, easy-to-follow invoicing target.
Accuracy and limitations
- Results are estimates before tax, fees, and inflation unless an input explicitly covers them.
- Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.
- This is educational maths, not financial advice. Check anything contractual with the lender or your accountant.
Related tools
How Much Should I Charge Per Hour as a Freelancer?
To replace a $75,000 salary with benefits while billing 60% of your time, you need to charge about $87/hour.
How Much Do I Need to Sell to Break Even?
With $8,000 in fixed monthly costs and a 40% contribution margin, you need $20,000 in monthly sales to break even.
Cite this calculator
Writing about this topic? Grab a citation — every link helps keep these tools free.
RevenueLab. (2026). How Much Do I Need to Invoice to Earn a Target Salary?. Retrieved from https://www.revenuelab.fyi/toolbox/how-much-do-i-need-to-invoice
<p>Source: <a href="https://www.revenuelab.fyi/toolbox/how-much-do-i-need-to-invoice" target="_blank" rel="noopener">How Much Do I Need to Invoice to Earn a Target Salary? — RevenueLab</a> (2026).</p>
Source: [How Much Do I Need to Invoice to Earn a Target Salary? — RevenueLab](https://www.revenuelab.fyi/toolbox/how-much-do-i-need-to-invoice) (2026).