Pricing guide
How to Calculate Your Freelance Rate
The biggest pricing mistake most freelancers make is treating billable hours like all working hours. They are not the same thing.
1. Start with take-home income
Pick the annual income you actually want after taxes and business costs, not the number that just sounds nice.
2. Add overhead
Software, insurance, accounting, equipment, marketing, and admin time all need to be covered by your rate.
3. Adjust for taxes
A rate that ignores taxes usually leads to undercharging. Use a conservative percentage if you are unsure.
4. Estimate realistic billable hours
If you work 40 hours per week, you probably cannot bill all 40. Sales, revisions, admin, and client communication eat time.
5. Add a cushion
Margin matters. A small profit cushion helps absorb slow periods and scope surprises.