How to Price Your Freelance Services
Why Most Freelancers Undercharge
Many freelancers set rates by guessing or copying competitors. This freelance rate calculator uses real math: your salary goals, business expenses, tax obligations, and billable hours. The result is your minimum sustainable rate — charge less and you're losing money.
Understanding the Numbers
Billable hours are the hours you can actually invoice clients. A 40-hour workweek might only include 20-25 billable hours after emails, marketing, admin, and business development. Self-employment tax is 15.3% on top of income tax. Business expenses include software subscriptions, equipment, insurance, office space, and professional development.
Freelance Pricing Strategies
- Hourly billing — Simple but caps your income. Best for new freelancers.
- Project-based pricing — Charge per deliverable. Rewards efficiency.
- Value-based pricing — Charge based on client ROI. Highest earning potential.
- Retainer model — Monthly fixed fee for ongoing work. Stable income.