Go Full-Time Calculator
Ready to quit your job and pursue freelancing or your side hustle full-time? Calculate your runway, crossover point, and the optimal time to make the leap.
Go Full-Time Calculator
Calculate when you can quit your job to freelance or pursue your side hustle full-time
Current Employment
Your take-home pay after taxes
Health insurance, 401k match, perks
Financial Position
Essential costs: rent, food, utilities, insurance
Savings dedicated to your transition
Side Hustle / Freelance Income
Average income from freelancing, consulting, etc.
Realistic: 5-15%. Optimistic: 15-25%
6 months runway + side income at 75% of expenses
Recommended Transition Date
Sep 2026
8 months from now
Current Runway
10 months
if you quit today
Crossover Point
11 months
income > expenses
Income Gap
$2,500
to cover expenses
Break-Even Income
$4,000
monthly minimum
Scenario Comparison
Projected Timeline
Gap Analysis
Savings Milestones
- Build 3-6 months of consistent income before quitting
- Factor in self-employment taxes (typically 15-30% higher effective rate)
- Research health insurance costs in your area
- Consider a part-time transition before going fully independent
- Diversify clients to reduce income volatility
How to Use This Calculator
Start by entering your current annual salary (after-tax) and monthly benefits value. Benefits include health insurance premiums your employer pays, 401(k) matching, and any other perks you'd lose by leaving.
Enter your monthly living expenses - this should be your essential costs like rent/mortgage, utilities, food, insurance, and transportation. Be realistic; underestimating expenses is a common mistake.
Input your current runway fund (savings dedicated to your transition) and your current monthly side income. If your income varies, use your conservative average from the last 3-6 months.
Set your expected monthly growth rate. A realistic rate is 5-15% monthly; anything above 20% is optimistic. The calculator uses compound growth to project when you'll reach key milestones.
Finally, select your risk tolerance and safety buffer to get personalized recommendations for when you're ready to quit.
Understanding Your Results
The crossover point is when your side income exceeds your monthly expenses. This is the minimum viable point where you could technically survive without your job, though it's not recommended without additional savings.
The recommended quit date factors in both your savings runway and income level based on your selected risk tolerance. Conservative means waiting until you have 12 months of runway and income matching expenses; aggressive means 3 months of runway and 50% income coverage.
The scenario comparison shows what you'd need at each risk level, helping you decide how much safety margin you're comfortable with.
Full income replacement is when your side income matches your total compensation (salary + benefits). This is the point where you're financially whole - earning as much independently as you did employed.
The readiness percentage combines your savings progress and income progress to give you an overall score. 100% means you meet all criteria at your selected risk level.
Making the Transition Successfully
Build consistency first: Three months of strong income followed by a dry spell is worse than steady moderate income. Focus on retainer clients and recurring revenue before quitting.
Consider a bridge period: Some people transition through part-time employment, contract work, or a leave of absence. This reduces risk while you build your client base.
Line up clients before you quit: Have at least 2-3 months of committed work before your last day. The stress of zero income on day one makes it harder to perform your best.
Prepare for the psychological shift: The freedom of self-employment comes with the burden of uncertainty. Many people underestimate how uncomfortable this feels, even with adequate savings.
Have a fallback plan: Know what you'd do if things don't work out in 6-12 months. Having a Plan B (return to employment, pivot services, etc.) reduces anxiety and ironically makes you more likely to succeed.
Frequently Asked Questions
How much should I save before quitting my job to freelance?
The general recommendation is 3-12 months of living expenses, depending on your risk tolerance. Conservative planners save 12 months, moderate 6 months, and aggressive 3 months. However, savings alone isn't enough - you should also have consistent side income covering at least 50-100% of your expenses. The combination of runway (savings) and income velocity determines your true readiness.
What is the 'crossover point' for going full-time?
The crossover point is when your side hustle income exceeds your monthly living expenses. This is a major milestone because it means you're technically sustainable without your job. However, reaching the crossover point doesn't mean you should quit immediately - you should also have a savings buffer and consistent income history (usually 3-6 months) before making the leap.
How do I calculate my true expenses when self-employed?
Self-employment expenses are typically 20-40% higher than employment expenses. Add: health insurance premiums (often $400-800/month for individuals), self-employment tax (additional 7.65% in the US), retirement contributions you'll fund yourself, business expenses (software, equipment, coworking), and an emergency buffer. A good rule is to multiply your current expenses by 1.3 to estimate self-employed expenses.
Should I factor in lost benefits when calculating my needed income?
Absolutely. Benefits often represent 20-40% of total compensation. Key items to account for: employer health insurance contribution ($300-800/month), 401(k) or pension matching (typically 3-6% of salary), paid time off value (calculate your daily rate times PTO days), life/disability insurance, and any other perks. Add these to your target income to get a true replacement number.
How long should my side income be consistent before I quit?
Most financial advisors recommend 3-6 months of consistent income at your target level before quitting. This proves it's not a fluke and you have repeatable client acquisition skills. Ideally, you should have multiple clients (reducing single-client risk) and a mix of project types. If your income is highly variable month-to-month, extend this to 6-12 months to calculate a reliable average.
What if my side income is irregular or variable?
Variable income is common for freelancers. Strategies include: calculate your 'floor' income (worst 3 months average) rather than best months, save larger buffers (9-12 months instead of 3-6), diversify income streams (retainer clients, productized services, passive income), and build a 'feast or famine' fund during high-income months. The calculator uses your average - consider inputting your conservative estimate.
How do taxes change when self-employed?
Self-employment increases your effective tax rate by 7.65% (the employer portion of FICA you now pay). You'll also pay quarterly estimated taxes instead of payroll withholding. However, you gain deductions: home office, equipment, health insurance premiums, retirement contributions (SEP-IRA, Solo 401k), business travel, and more. Many freelancers find their effective rate is similar once they optimize deductions. Budget 25-35% of income for taxes as a safe estimate.
What's a realistic growth rate for side income?
Monthly growth rates vary widely: 5-10% is realistic for steady, sustainable growth through referrals and marketing. 10-20% is achievable with active marketing, networking, and service expansion. 20%+ is possible but usually unsustainable long-term or requires significant time investment. Be conservative in projections - most businesses plateau or grow in spurts, not linearly. The calculator compounds monthly, so even 5% = 80% annual growth.
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