How to work out your freelance rate
Quick answer: To work out your freelance rate, enter the income you want, add your costs, be honest about billable hours and read your rate.
- Enter the income you want. What you want to take home in a year, after tax.
- Add your costs. Software, equipment, insurance, coworking, accountant: everything the business pays for.
- Be honest about billable hours. Most freelancers bill 20–30 hours a week. The rest goes on admin, sales and learning.
- Read your rate. That's your minimum. Charge more for rush jobs and specialist work.
Why freelance rates look high
An employee's salary doesn't include unpaid holidays, sick days, equipment, software or the hours spent finding clients. Your rate must cover all of that, which is why it's usually 1.5–2 times the hourly pay of a similar job.
Frequently asked questions
How many billable hours should I assume?
25 a week is a realistic starting point. New freelancers often bill fewer while they build a client list.
Should I charge hourly or per project?
Use your hourly rate to price projects. Fixed project prices reward you for working faster.