Formulas
Hourly rate
Required revenue = (desired income + business expenses) × (1 + buffer %). Minimum rate = required revenue ÷ (working weeks × billable hours per week).
Upwork & Fiverr net earnings
Platform fee = gross × fee %. Conversion cost = (gross − platform fee) × conversion %. Net = gross − platform fee − conversion cost − withdrawal fee. Upwork's freelancer service fee is variable (0–15%) and set per contract; Fiverr's is a flat 20%.
Creator tax and freelance take-home (US)
Net profit = income after platform fee − expenses. Self-employment tax = 12.4% of 92.35% of net profit up to the Social Security wage base ($184,500 for 2026), plus 2.9% of 92.35% of net profit. Half of that tax is deducted, then the 2026 standard deduction ($16,100 single, $32,200 married filing jointly) and the 2026 federal brackets (IRS Rev. Proc. 2025-32) are applied.
Creator tax and freelance take-home (UK)
Personal Allowance £12,570, reduced by £1 for every £2 of income above £100,000. Then 20% on the first £37,700 of taxable income, 40% up to £125,140, and 45% above. Class 4 National Insurance: 6% on profits between £12,570 and £50,270, and 2% above. Rates are for England, Wales and Northern Ireland, tax year 2026/27.
Etsy profit
Revenue = item price + shipping charged. Fees = listing fee + 6.5% transaction fee on revenue + payment processing (country rate) + regulatory operating fee (country rate) + Offsite Ads fee if it applies. VAT on fees is added where Etsy charges it. Profit = revenue − fees − VAT − item cost − your shipping cost.
Sources
US tax: IRS, Rev. Proc. 2025-32 and the SSA wage base. UK tax: GOV.UK income tax rates and HMRC National Insurance rates. Platform fees: Etsy fees policy, the Upwork help center and Fiverr's Help Center.
Known limitations
- US estimates exclude state and local tax, the 20% qualified business income deduction, additional Medicare tax, credits and other income, so they can overstate tax for many freelancers.
- UK estimates cover England, Wales and Northern Ireland only. Scottish rates, student loans and pension contributions are not included.
- Upwork's fee differs by contract, so the figure you enter should match the rate shown on your offer.
- Etsy's listing fee is charged in your local currency, so it is editable; check your payment account for exact amounts.
Update log
- October 2026: US tools updated to 2026 brackets, standard deduction and Social Security cap; UK tools updated to 2026/27 with the allowance taper; Etsy tool corrected for UK and Canada processing fees, with VAT on fees and an editable listing fee added.
- 22 June 2026: Etsy regulatory operating fees changed in several countries; the Etsy calculator uses the new rates.
Corrections
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