guide2 min read

Freelance Pricing Guide

Calculate your freelance rate, negotiate projects, and avoid undercharging.

Freelance rate formula: (Target annual income + taxes + expenses + profit) / billable hours per year. Example: ($100K income + $20K taxes + $10K expenses + $20K profit) / 1,200 billable hours = $125/hour. Most freelancers bill 60-70% of working hours (rest is admin, marketing, learning). Common mistake: using your salary hourly rate — freelance rates must be 2-3x employee equivalent to cover benefits, taxes, and unbilled time.