What is the net worth of a freelance developer? In this article, you’ll learn the expected net worth of a freelance developer as a rough estimate.
Definition net worth: Net worth is the value the assets a person or corporation owns, minus the liabilities they owe. It is an important metric to gauge a company’s health and it provides a snapshot of the firm’s current financial position. (source)
The net worth of a freelance developer who earns the average $134,400 per year and saves 10% per year in a low-cost S&P500 index fund is $204,192 after 10 years, $687,592 after 20 years, and $4,541,140 after 40 years. Under these assumptions, a freelance developer with a savings rate of 20% reaches $1,000,000 net worth in year 18. An alternative measurement stick is a simple P/E valuation based on which the expected net worth of a freelance developer would be approximately 10x earnings which is $1,344,000.
Let’s see how we developed these numbers based on realistic assumptions and averaged statistics over millions of US workers.
To come up with a meaningful figure, we’re going for a few assumptions:
Assumptions
- We assume a US-based freelance developer. Most non-US freelancers can approximate the net worth and earning potential of a US-based freelance developer by using freelancing platforms such as Upwork and Fiverr to participate in the US economy.
- We assume that the freelance developer has average skills earning the average hourly rate of a Python developer of $56 per hour. The average Python developer worldwide earns $56 per hour (fluctuations between $51 and $61). This statistic is based on five credible online sources including the US government. You can learn more about the hourly rate here.
- Based on a conservative estimation, your income as a Python freelancer will be $134,400 per year assuming a normal workday of eight billed hours per day for 300 days per year.
- We assume that the freelancer has a saving rates of 10%. The average savings rate in the US has been between 7% and 17% during the COVID-19 crisis:
- We further assume that the saved money is invested in a low-cost index fund generating the 100-y historic return of 9% after fees. (source)
Calculation Net Worth Freelance Developer
Let’s see how the net worth of a freelancer would progress over a period of 50 years based on these assumptions.
So, if you start with age 20, you’d have an $11,000,000 net worth at age 70—quite a legacy! Here’s the yearly table:
| Years | Future Value (9.00%) | Total Contributions |
|---|---|---|
| Year 0 | $0.00 | $0.00 |
| Year 1 | $13,440.00 | $13,440.00 |
| Year 2 | $28,089.60 | $26,880.00 |
| Year 3 | $44,057.66 | $40,320.00 |
| Year 4 | $61,462.85 | $53,760.00 |
| Year 5 | $80,434.51 | $67,200.00 |
| Year 6 | $101,113.62 | $80,640.00 |
| Year 7 | $123,653.84 | $94,080.00 |
| Year 8 | $148,222.69 | $107,520.00 |
| Year 9 | $175,002.73 | $120,960.00 |
| Year 10 | $204,192.98 | $134,400.00 |
| Year 11 | $236,010.34 | $147,840.00 |
| Year 12 | $270,691.27 | $161,280.00 |
| Year 13 | $308,493.49 | $174,720.00 |
| Year 14 | $349,697.90 | $188,160.00 |
| Year 15 | $394,610.71 | $201,600.00 |
| Year 16 | $443,565.68 | $215,040.00 |
| Year 17 | $496,926.59 | $228,480.00 |
| Year 18 | $555,089.98 | $241,920.00 |
| Year 19 | $618,488.08 | $255,360.00 |
| Year 20 | $687,592.01 | $268,800.00 |
| Year 21 | $762,915.29 | $282,240.00 |
| Year 22 | $845,017.66 | $295,680.00 |
| Year 23 | $934,509.25 | $309,120.00 |
| Year 24 | $1,032,055.09 | $322,560.00 |
| Year 25 | $1,138,380.05 | $336,000.00 |
| Year 26 | $1,254,274.25 | $349,440.00 |
| Year 27 | $1,380,598.93 | $362,880.00 |
| Year 28 | $1,518,292.84 | $376,320.00 |
| Year 29 | $1,668,379.19 | $389,760.00 |
| Year 30 | $1,831,973.32 | $403,200.00 |
| Year 31 | $2,010,290.92 | $416,640.00 |
| Year 32 | $2,204,657.10 | $430,080.00 |
| Year 33 | $2,416,516.24 | $443,520.00 |
| Year 34 | $2,647,442.70 | $456,960.00 |
| Year 35 | $2,899,152.54 | $470,400.00 |
| Year 36 | $3,173,516.27 | $483,840.00 |
| Year 37 | $3,472,572.74 | $497,280.00 |
| Year 38 | $3,798,544.28 | $510,720.00 |
| Year 39 | $4,153,853.27 | $524,160.00 |
| Year 40 | $4,541,140.06 | $537,600.00 |
| Year 41 | $4,963,282.67 | $551,040.00 |
| Year 42 | $5,423,418.11 | $564,480.00 |
| Year 43 | $5,924,965.74 | $577,920.00 |
| Year 44 | $6,471,652.65 | $591,360.00 |
| Year 45 | $7,067,541.39 | $604,800.00 |
| Year 46 | $7,717,060.12 | $618,240.00 |
| Year 47 | $8,425,035.53 | $631,680.00 |
| Year 48 | $9,196,728.72 | $645,120.00 |
| Year 49 | $10,037,874.31 | $658,560.00 |
| Year 50 | $10,954,723.00 | $672,000.00 |
After only 24 years working as a freelance developer, you’ll become a millionaire! Note that this graphic doesn’t talk about inflation which could reduce your pace by 2-3% per year. On the other hand, inflation will probably also cause your yearly earnings to rise. Also, you could probably increase your savings rate as you earn more and more through investments. Together, these two factors may balance out.
The same discussion must be made about the development of your skills. In this simulation, we assume that your skills remain average all your life. In my experience, you can reach this average skill relatively quickly after 4-5 years focused effort. You can check out my detailed Python freelancer program to learn how you can accelerate the process towards your thriving freelance developing business online. So, your earnings will probably grow over the years which makes it easier and easier to save more and more money over time.
Related video:
Note that with 20% savings rate (which is possible for most people), you’d reach your goals much earlier:
With a savings rate of 20%, you can reach the $10 million mark already after 40 years and the $1 million mark after 18 years.
| Years | Future Value (9.00%) | Total Contributions |
|---|---|---|
| Year 0 | $0.00 | $0.00 |
| Year 1 | $26,880.00 | $26,880.00 |
| Year 2 | $56,179.20 | $53,760.00 |
| Year 3 | $88,115.33 | $80,640.00 |
| Year 4 | $122,925.71 | $107,520.00 |
| Year 5 | $160,869.02 | $134,400.00 |
| Year 6 | $202,227.23 | $161,280.00 |
| Year 7 | $247,307.68 | $188,160.00 |
| Year 8 | $296,445.38 | $215,040.00 |
| Year 9 | $350,005.46 | $241,920.00 |
| Year 10 | $408,385.95 | $268,800.00 |
| Year 11 | $472,020.69 | $295,680.00 |
| Year 12 | $541,382.55 | $322,560.00 |
| Year 13 | $616,986.98 | $349,440.00 |
| Year 14 | $699,395.81 | $376,320.00 |
| Year 15 | $789,221.43 | $403,200.00 |
| Year 16 | $887,131.36 | $430,080.00 |
| Year 17 | $993,853.18 | $456,960.00 |
| Year 18 | $1,110,179.96 | $483,840.00 |
| Year 19 | $1,236,976.16 | $510,720.00 |
| Year 20 | $1,375,184.02 | $537,600.00 |
| Year 21 | $1,525,830.58 | $564,480.00 |
| Year 22 | $1,690,035.33 | $591,360.00 |
| Year 23 | $1,869,018.51 | $618,240.00 |
| Year 24 | $2,064,110.17 | $645,120.00 |
| Year 25 | $2,276,760.09 | $672,000.00 |
| Year 26 | $2,508,548.50 | $698,880.00 |
| Year 27 | $2,761,197.86 | $725,760.00 |
| Year 28 | $3,036,585.67 | $752,640.00 |
| Year 29 | $3,336,758.38 | $779,520.00 |
| Year 30 | $3,663,946.64 | $806,400.00 |
| Year 31 | $4,020,581.83 | $833,280.00 |
| Year 32 | $4,409,314.20 | $860,160.00 |
| Year 33 | $4,833,032.48 | $887,040.00 |
| Year 34 | $5,294,885.40 | $913,920.00 |
| Year 35 | $5,798,305.08 | $940,800.00 |
| Year 36 | $6,347,032.54 | $967,680.00 |
| Year 37 | $6,945,145.47 | $994,560.00 |
| Year 38 | $7,597,088.56 | $1,021,440.00 |
| Year 39 | $8,307,706.53 | $1,048,320.00 |
| Year 40 | $9,082,280.12 | $1,075,200.00 |
| Year 41 | $9,926,565.33 | $1,102,080.00 |
| Year 42 | $10,846,836.21 | $1,128,960.00 |
| Year 43 | $11,849,931.47 | $1,155,840.00 |
| Year 44 | $12,943,305.31 | $1,182,720.00 |
| Year 45 | $14,135,082.78 | $1,209,600.00 |
| Year 46 | $15,434,120.23 | $1,236,480.00 |
| Year 47 | $16,850,071.05 | $1,263,360.00 |
| Year 48 | $18,393,457.45 | $1,290,240.00 |
| Year 49 | $20,075,748.62 | $1,317,120.00 |
| Year 50 | $21,909,446.00 | $1,344,000.00 |
Where to Go From Here?
Enough theory. Let’s get some practice!
Coders get paid six figures and more because they can solve problems more effectively using machine intelligence and automation.
To become more successful in coding, solve more real problems for real people. That’s how you polish the skills you really need in practice. After all, what’s the use of learning theory that nobody ever needs?
You build high-value coding skills by working on practical coding projects!
Do you want to stop learning with toy projects and focus on practical code projects that earn you money and solve real problems for people?
🚀 If your answer is YES!, consider becoming a Python freelance developer! It’s the best way of approaching the task of improving your Python skills—even if you are a complete beginner.
If you just want to learn about the freelancing opportunity, feel free to watch my free webinar “How to Build Your High-Income Skill Python” and learn how I grew my coding business online and how you can, too—from the comfort of your own home.