There’s no doubt: one of the first things anyone considering a freelance career needs to understand is that, unlike an employee, they are responsible for paying their own taxes and social security contributions. These amounts are not withheld by an employer from a paycheck—instead, because the freelancer is “their own boss,” they must pay taxes and contributions themselves, following current laws and according to their tax status and type of work.
Every freelancer must keep this in mind when preparing a quote for a client or drafting a price list. The amount they receive is gross income—from which taxes and contributions must be subtracted. But how can you figure out your exact net earnings?
There are specific calculations needed to answer that, and freelancers need to be able to perform these calculations every time they negotiate compensation.
There isn’t a one-size-fits-all formula, because the calculation depends on a person’s tax status (for example, whether they’re in the simplified flat-rate tax scheme at 5% or 15%, or in the standard tax regime with progressive rates based on income) and on the type of work they do (as different professions have different taxable income coefficients and contribution rates depending on their pension fund).
But don’t worry: in this article, we’ll clarify things by looking at two example freelance workers and go through all the steps needed to calculate how much they should invoice to earn a net income of €2,000 and €5,000 per month. That way, you’ll get a clear idea of what gross rate to charge.
How much do I need to invoice to earn €2,000 net per month?
As mentioned, in order to correctly calculate net income, you need to know some key details about your work setup—primarily your tax regime and type of activity—so you can apply the right percentages and coefficients.
Let’s look at two different cases: the first is Giulia, who uses the flat-rate regime, and the second is Arianna, who is in the standard regime.
Giulia’s case – flat-rate regime freelancer
Giulia is a freelance copywriter with a VAT number under the flat-rate regime. She hasn’t recently launched a startup (within the past 5 years), so the tax rate she pays is 15%. (If she had a qualifying startup, this rate would drop to 5% for the first 5 years.)
To qualify for the flat-rate regime—called “simplified” because of its low fixed rate—you must meet certain criteria. The main one is having an annual gross revenue under €85,000. Giulia stays below this limit.
Another key data point is her type of activity. Every business has an ATECO code that identifies its economic sector, which determines the taxable income coefficient—basically, what portion of revenue is considered taxable income. Under the flat-rate regime, deductible expenses are calculated as a fixed percentage rather than tracking actual expenses like in the standard regime.
For Giulia as a copywriter, the ATECO coefficient is 78%.
The third key figure is social security contributions. Giulia doesn’t belong to a specific professional pension fund (like psychologists, engineers, etc.), so she’s automatically enrolled in the “Gestione Separata INPS.” In 2025, the contribution rate for freelancers with a VAT number is 26.07%.
To sum up, here are Giulia’s key numbers:
- 15% = tax rate
- 78% = income coefficient
- 26.07% = INPS contribution rate
Now the calculation: (15% × 78%) + (26.07% × 78%) = 32.03%
So 32.03% of Giulia’s gross income goes to taxes and contributions, leaving her with 67.97%.
To calculate how much she needs to invoice to earn €2,000 net:
2,000 : 67.97 = X : 100
(2,000 × 100) / 67.97 = €2,942
So Giulia needs to invoice at least €2,942 per month, or around €3,000, to earn €2,000 net.
Arianna’s case – standard tax regime
Arianna is also a freelance copywriter, but she’s under the standard tax regime.
Here, instead of a fixed tax rate, you must consider progressive income brackets (IRPEF):
- 23% for income up to €28,000
- 35% from €28,000 to €50,000
- 43% for income over €50,000
Like Giulia, Arianna pays 26.07% in contributions to the Gestione Separata INPS.
Now we need to identify which income bracket Arianna falls into in order to net €2,000 per month.
Let’s walk through it:
1st bracket (up to €28,000)
(€28,000 × 23%) + (€28,000 × 26.07%) = €13,740 → net = €14,260 = €1,188/month
2nd bracket (€28,000–€50,000)
(€22,000 × 35%) + (€22,000 × 26.07%) = €13,435
€28,000 – 13,740 = €14,260
€14,260 + (€22,000 – €13,435) = €22,825 net = €1,902/month
3rd bracket (assuming €60,000 income)
(€10,000 × 43%) + (€10,000 × 26.07%) = €6,907
Total net = €25,918 = €2,160/month
So, to earn €2,000 net/month, Arianna needs a gross income of around €60,000/year.
Let’s break it down further by tax bracket:
- 1st bracket: 49.07% total rate → €14,260 / 0.4907 = €29,060
- 2nd bracket: 61.07% → €8,565 / 0.6107 = €14,025
- 3rd bracket: 69.07% → €1,175 / 0.6907 = €1,701
Total gross income: €29,060 + €14,025 + €1,701 = €44,786 (€3,732/month)
How much do I need to invoice to earn €4,000 net per month?
We now repeat the same process for a monthly net of €4,000.
Giulia’s case – flat-rate regime
We already know Giulia’s net percentage is 67.97%.
To calculate the gross amount needed:
4,000 : 67.97 = X : 100
(4,000 × 100) / 67.97 = €5,885
So Giulia needs to invoice at least €5,885/month, or around €70,620/year.
⚠️ Note: This exceeds the €85,000 gross revenue cap for the flat-rate regime, so Giulia would no longer qualify and would be pushed into the ordinary regime if she kept that pace for the full year.
Arianna’s case – standard regime
We already know from the previous example that Arianna falls into the highest tax bracket (43%). To earn €4,000 net/month = €48,000/year, we replicate the earlier steps but with the updated net figure.
However, in the standard regime, actual deductible business expenses also affect taxable income—unlike in the flat-rate regime. So the gross income needed could vary depending on her actual costs.
In this case, the calculations remain valid only if Arianna has no deductible expenses.
Still unsure how to calculate your net freelance income? Let Xolo help!
This article has outlined how to calculate how much to invoice to earn €2,000 or €4,000 net per month. But as you’ve seen, every situation is different and influenced by various factors. That’s why it’s essential to have the right partner.
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