Turn an income goal into operating targets
A personal income goal is not the same as the revenue your freelance business must collect. Revenue also needs to cover business expenses and the percentage reserved for tax, savings, or other obligations.
Work backward from the life you want to fund
Start with the amount you need personally, then add realistic business costs. The reserve adjustment increases the target so the entered percentage can be set aside without reducing the planned income.
Break the target into useful operating numbers
The monthly result becomes a weekly average based on 12 months divided across 52 weeks. Working days, billable hours, and client count create daily, hourly, and per-client targets.
Example
A desired personal income of 5,000 plus 800 in business expenses, with a 25% reserve, requires approximately 7,733 in monthly revenue. With four clients, the average revenue target is about 1,933 per client.
Plan for uneven cash flow
Freelance revenue can be seasonal and invoices may be paid late. Review a rolling three-month average and build a business cash buffer.
Common questions
Why is my required revenue higher than my income goal?
The revenue target also includes business expenses and the amount reserved before personal income is available.
How are weekly targets calculated?
The calculator annualizes the monthly target and divides it across 52 weeks.
Should I use total working hours or billable hours?
Use billable hours: the time you can realistically invoice to clients.
What if my clients pay different amounts?
The per-client figure is an average planning target. Individual clients can contribute more or less.