Calculate net pay from a freelance invoice.
An invoice total is not take-home pay. The platform fee comes off the top, job expenses are money you already spent, and tax is owed on what remains rather than on the headline figure. Working in that order gives net pay, and the keep percentage is the number to remember when quoting: it is typically far below 100% and explains why gross rates must exceed salary equivalents.
Invoice to net pay
Net pay = (invoice - invoice x fee/100 - job expenses) x (1 - tax set aside/100)
Tax rates, deductible expenses and contribution rules vary by country and change over time. Figures here are an estimate for planning only and are not tax advice.
No — on profit. Deducting the platform fee and legitimate job expenses first is what stops you over-reserving, though the exact deductible set depends on your jurisdiction.
Many independents reserve 25-35% of profit to cover income tax and self-employment or social contributions. The right figure depends on your bracket and local rules.
Because fees, expenses and tax each take a slice. That gap is the main reason a freelance rate has to sit well above an equivalent salaried hourly wage.