Plan your freelance finances with confidence. Enter your savings, monthly and annual expenses, and your income to see whether you are over or under budget. Free, and no signup needed.
A freelance budget is a simple plan that lines up the money coming in against the money going out, so you can see whether you are living within your means. Because freelance income is often irregular, a budget is one of the most useful tools you have for staying in control.
Why freelancers need a budget
Income is uneven
Some months are busy and some are quiet, so a budget helps you smooth out the gaps.
Taxes are on you
No employer withholds tax for you, so you need to plan and set it aside yourself.
No built-in benefits
Health, retirement, and time off all come out of your own income, so budget for them.
Less stress
Knowing your numbers means fewer surprises and better calls on what work to take.
How to use this calculator
Enter what you put toward savings each month, your monthly and annual expenses, and your income. The calculator totals each group and tells you whether you are over budget (spending more than you bring in) or under budget (with money to spare).
The 50/30/20 rule, adapted for freelancers
A simple place to start: split your take-home pay into three buckets. As a freelancer, set your tax money aside first, then apply the split to what is left.
50% Needs
Rent, food, utilities, insurance, the essentials you cannot skip.
30% Wants
The nice-to-haves: eating out, subscriptions, hobbies, and travel.
20% Savings
Your emergency fund, retirement, and paying down any debt.
The percentages are a guide, not a rule. Adjust them to fit your income and goals.
Budgeting on an irregular income
When some months are busy and others are quiet, budget from your quiet months, not your best ones:
Pay yourself a fixed amount. Move a steady "salary" to your personal account each month and leave the rest in your business account as a buffer.
Plan around your leanest month, so a slow spell does not catch you out. Anything above that is a bonus.
Keep one to three months of expenses in reserve, and top it back up whenever you have a strong month.
Tips for budgeting as a freelancer
Set aside a portion of every payment for taxes. The right amount depends on your income and where you live, so check your tax bracket or ask a professional.
Build an emergency fund that can cover a few months of essentials, so a slow period does not derail you.
Keep your business and personal money in separate accounts. It makes budgeting and tax time far simpler.
Review your budget regularly and adjust as your income and costs change.
Invoice promptly and follow up on late payments, steady cash flow makes any budget easier to keep.
A budget works best with steady cash flow.
Invoice clients, track what you are owed, and get paid faster with a free Billbooks account.
Your income, your regular monthly expenses, larger annual costs like insurance or taxes, and what you put toward savings. Include money set aside for taxes and an emergency fund, since those are easy to forget as a freelancer.
It depends on your total income and where you live, so there is no single number. Set aside a portion of every payment as you go, and confirm the right amount with your tax bracket or a tax professional so you are not caught short.
Base your budget on a conservative average of your income, keep an emergency fund to cover slow months, and treat any high-earning month as a chance to top up savings rather than to increase spending.
Over budget means your planned spending and savings are more than your income, so you have a shortfall to address. Under budget means your income covers everything with money left over.
Yes. It is completely free, with no signup and no credit card. Enter your numbers and see your budget right away.
