What is this Tool?
The WFH Cost Calculator helps freelancers and remote workers understand the true monthly cost of working from home. When you work from home, your household bills — electricity, internet, furniture wear and tear, heating and cooling — increase significantly. These are legitimate business expenses that should be factored into your freelance rates. Many freelancers forget to account for these costs, effectively subsidising their clients' overhead.
Frequently Asked Questions
Q: Can I claim WFH expenses as tax deductions in India?
A: Self-employed individuals and freelancers can claim the work-use proportion of electricity, internet, rent, and equipment as business expenses under the Income Tax Act. Keep all bills and receipts.
Q: What percentage of electricity is typically work-related?
A: For a home office used exclusively for work during working hours, 30-50% of the electricity bill is typically attributed to work. This includes computer, monitor, AC/fan, and lighting.
Q: Is working from a cafe deductible?
A: Coffee shop expenses incurred while working are generally deductible as business expenses for self-employed individuals. Keep receipts and note what work was done.
Q: Should WFH costs be included in my freelance rate?
A: Yes. Every legitimate business cost should be factored into your pricing. Your rate should cover all expenses plus profit — WFH costs are real business overheads, not personal expenses.