How to Set a Freelance Income Goal (And Actually Hit It)

If you ask a new independent professional what their freelance income goal is, 90% of them will say the exact same thing: "$100,000." It is a nice, round, culturally celebrated number. But it is also a completely arbitrary target that usually leads to burnout, underpricing, and massive tax anxiety.

Setting an income goal isn't about picking a number that sounds impressive. It is an exercise in reverse engineering. You have to build a mathematical bridge between the lifestyle you want to live, the expenses required to run your business, the taxes you owe the government, and the actual number of hours you can realistically work in a week.

What Is a Freelance Income Goal?

A true freelance income goal is not your salary. It is the precise amount of Gross Revenue your solo business must generate to successfully fund three separate entities: your personal life, your business operations, and the government.

If your goal is to "make $100,000," and you simply invoice clients until you hit $100,000 in gross revenue, you have not actually made $100,000. Out of that top-line revenue, you must pay for your Adobe subscriptions, your web hosting, your new laptop, your health insurance, and roughly 25% to 30% in self-employment and income taxes. To ensure you're setting aside enough for the government, always use a freelance tax estimator to calculate your liability in dollars.

Reverse Engineering Income Goals: Step-by-Step

To make your income goal feel achievable, you must break it down into daily and hourly targets. This removes the "magic" from the number and gives you a clear execution plan.

Example: The $100,000/Year Roadmap

Let's look at a concrete breakdown for a freelancer aiming for a gross revenue of $100,000 per year (approx. ₹83 Lakhs/year at current rates, but we'll focus on USD for global standards).

This breakdown shows that to hit a six-figure income, you don't need to work 80 hours a week; you need to bill at least $69 per hour for 30 hours a week. If you prefer fixed-price work, you can use our project pricing calculator to ensure your flat rates match this hourly requirement.

5 Common Freelance Income Goal Mistakes

Before we walk through the exact mathematical formula, you must understand the traps that cause 90% of freelancers to miss their targets.

1. Using Gross Instead of Net: Assuming your invoice total equals your take-home pay is the fastest route to freelance poverty.
2. Assuming 40 Billable Hours: You do not get paid for 40 hours a week. Most freelancers bill between 20 to 30 hours per week.
3. Ignoring Self-Employment Taxes: Freelancers pay the full 15.3% Self-Employment tax on top of standard income tax.
4. Not Adjusting for Vacation: You must calculate your goal based on a 46-to-48-week working year.
5. Not Increasing Project Value: If you try to scale while still selling $500 projects, you will burn out.

The Freelance Income Goal Calculator Formula

To set a bulletproof income goal, you have to work backward. We use a concept called the Gross-Up Formula. This calculates exactly how much top-line revenue you must generate to be left with your desired net profit.

The Formula:

Once you have this target, the next step is to determine what you should charge per hour to hit it. If your calculated target feels too high for your current rates, you should immediately use our hourly rate calculator to see how much you need to increase your prices to bridge the gap.

Frequently Asked Questions