Freelance vs full-time salary calculator
Enter your freelance rate, realistic unpaid months, and a full-time CTC offer. See which one actually pays more after tax.
Frequently asked questions
Is freelancing more profitable than a full-time job in India?
It depends on your billing rate, how consistently you can find work, and how many months you go without income between clients. A freelancer billing well above a comparable salaried role can still net less if there are several unpaid months in the year. This calculator compares real take-home for both, accounting for realistic gaps.
How many unpaid months should I assume when comparing freelance income to a job offer?
For someone new to freelancing, 1 to 3 months a year without billable work is a realistic planning assumption, covering slow periods between clients and time needed for business development. Established freelancers with a steady client base may have none. Use your own honest estimate rather than assuming zero.
Does this calculator account for tax differently for freelance and full-time income?
Yes. Freelance income is taxed under Section 44ADA presumptive taxation, where 50% of gross receipts is taxable profit. Full-time salary is taxed on the full CTC after the standard deduction, with an employee provident fund contribution also reducing take-home pay. These are genuinely different tax treatments, not the same calculation applied twice.
What does this calculator not account for?
It compares cash take-home only. It does not price in gratuity, employer PF matching, health insurance, or paid leave on the full-time side, or the flexibility, tax deductions on business expenses, and unlimited income ceiling on the freelance side. Those are real factors worth weighing alongside the number, not folded into it.
Should I compare my current salary or a new job offer's CTC?
Use whichever CTC figure you are actually deciding against, current salary if you are considering leaving a job to freelance, or a new offer if you are comparing an existing freelance practice against taking that job. The calculation is the same either way, only the number you enter changes.