A freelance invoice rarely hits your bank account at the number on the bottom line.
About this calculator
A freelance invoice rarely hits your bank account at the number on the bottom line. Three things chip away: GST that you collect and owe to the government (pass-through for you but still cash to manage), TDS that the client withholds at source, and any platform fee charged by the intermediary. For an Indian freelancer invoicing a domestic client at 2,500 per hour for 100 hours, a headline 2.5 lakh invoice often lands at 2.2 lakh after the usual 10% TDS under Section 194J, and that is before GST registration complexity.
This calculator takes you from hours and rate to net received, with explicit rows for each deduction. It handles USD invoicing with conversion at your chosen rate, distinguishes export (0% GST) from domestic (18% GST), selects the right TDS section -- 194J for professional services at 10%, 194C for contractors at 2%, 194H for commissions at 5% -- and lets you apply a platform fee for marketplace invoices (Upwork, Toptal, Freelancer).
Two things worth remembering. One, TDS is not a cost. The client deposits it against your PAN and you can claim the full amount back as refund or offset against your tax liability when filing ITR. Track the Form 26AS carefully. Two, GST collected is not income. Keep it in a separate account and remit by the 20th of the next month. Mixing GST into operating cash is the single biggest reason small freelancers end up short at tax time. See [[gst]] for the collect-versus-remit math and [[freelancer-44ada-calculator]] for presumptive taxation.
Common uses
- Computing real in-bank amount from a 2.5 lakh invoice after 194J TDS and 18% GST
- Comparing USD invoicing with domestic invoicing at the current exchange rate
- Calculating the impact of Upwork
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Frequently asked questions
Is TDS a cost I cannot recover?
No. TDS is tax deducted at source and credited to your PAN. You can claim it back as a refund when you file ITR or offset it against your total tax liability. Track it through Form 26AS every quarter and make sure the client has deposited what they withheld.
Which TDS section applies to freelance work?
Section 194J at 10% covers professional services (IT consulting, legal, medical, design). Section 194C at 2% covers contract work and production. Section 194H at 5% covers commission. If your invoices are below 30,000 per month or 1 lakh per year per section, TDS does not kick in.
Do I need to charge GST on export invoices?
No, services exported to a non-resident with payment in foreign currency are zero-rated under GST. You need GST registration if your total turnover (domestic plus export) exceeds 20 lakh, but the export invoice itself carries 0% GST.
Should I register for GST as a freelancer?
Mandatory if your annual receipts exceed 20 lakh (services). Below that, registration is optional. Voluntary registration lets you claim input credit on business expenses (laptop, software, office rent) and looks more professional on invoices, but adds monthly compliance.
How does platform fee work on Upwork or Freelancer?
Platforms typically charge 5-20% of the invoice total. They deduct this before transferring to you, so it is a real cost not a tax. Enter it in the calculator to see the net after platform cut. Platform fees are also deductible as business expense when you file ITR.