Short answer: to keep $1,000 a month after setting aside 25% for taxes, you need about $1,333 in revenue. At $25 an hour that is roughly 53 paid hours, or 12 hours a week. But if 30% of your time goes to pitching and admin, it is closer to 16 hours a week. The table below shows your number.
This is educational content, not financial advice. The 25% set-aside is a planning assumption, not a tax rule; your real rate depends on your income and state.
The math, step by step
Most “make $1,000 a month” posts skip the two things that eat your time: taxes and unpaid work. Here is the formula we use:
- Revenue needed = $1,000 ÷ 0.75 = about $1,333 (keeping 25% aside for taxes).
- Paid hours = $1,333 ÷ your hourly rate.
- Weekly hours = paid hours ÷ 4.33 weeks in a month.
Hours per week by hourly rate
| Hourly rate | Paid hours / month | Per week | Per week if 30% is unpaid |
|---|---|---|---|
| $15 | 89 | 20.5 | 26.7 |
| $25 | 53 | 12.3 | 16.0 |
| $40 | 33 | 7.7 | 10.0 |
| $60 | 22 | 5.1 | 6.6 |
The last column assumes that for every 10 hours you bill, you spend another 3 finding clients, sending invoices and answering messages. That is an assumption, but it is a mild one for a beginner.
Why the tax set-aside matters
In the US, if you earn $400 or more in net self-employment income in a year, you generally owe self-employment tax (15.3% for Social Security and Medicare) on top of regular income tax, according to the IRS. We covered the 1099 myth in side income is taxable even without a 1099. Setting 25% aside from the first dollar is a simple habit that avoids a bad April.
What this means for your choice of hustle
- Under $20 an hour: you need a part-time job’s worth of hours. Fine as a bridge, hard to sustain on top of a full-time job.
- $25 to $40 an hour: the realistic beginner range for skilled freelance work such as editing, bookkeeping help or design. See what hourly rate matches a $60,000 salary.
- Products instead of hours: the hours happen up front, then sales can continue. The trade-off is that income is uncertain. Our break-even math on 5 setups compares them.
Who it’s for / who should skip it
For: anyone deciding whether a side hustle fits into a real week. Skip it if: you already have a steady client base and know your numbers.
Our take
Pick the hourly rate you can honestly defend, run the table, and then ask whether you would give up that many evenings. If the answer is no, raise your rate or change the hustle before you spend a dollar. For the full ranking of routes by speed, start with our guide to earning your first $1,000 online.