A guide to calculating your freelance rate
If you’re new to freelancing, it may be tricky to work out how much to charge each client. Get guidance on how to calculate your freelance rate here!
Do you find yourself wondering how much to charge clients for your work? Setting rates for freelance contracts varies greatly by experience, industry, and confidence. It would be best to have a guide to calculate your rate and get paid what you’re worth.
Read on to discover the keys to establishing your freelance rate. You’ll even learn tips for getting paid faster, so you’re not left wondering when the next paycheck comes in.
What affects your freelance rate
You need a grasp of certain things when you set your freelance rate. These things vary for every freelancer (although industry standards can give you an idea of what your peers earn). You should consider:
- Expenses: supplies, certifications, travel, marketing, branding, and your salary
- Unpaying income: time spent on administrative tasks, lead sourcing, pitching, etc.
- Minimum acceptable rate (MAR): lowest freelance hourly rate you’ll accept
- Income taxes: vary by state and country
- Working days: days per week, month, and year you’re willing to work
When you consider each of these factors how much to charge, you’re more likely to set your rate at what it’s worth.
Calculating your freelance hourly rate
Your minimum acceptable rate is not something you’ll want to share with clients. It’s more important for your own reference to determine how long it takes you to complete projects. Here’s the simple equation for calculating your hourly freelance rate:
Living costs + business expenses + salary / annual hours worked + income tax
Using this sum, you can properly invoice any client for a freelance contract. Whether you create long-term packages or one-off projects, this can set a basic standard. You may find cause to increase your basic hourly rate under a few circumstances.
If you have niched expertise on topics or high-value industry skillsets, you can charge more. Make sure to evaluate your experience and communicate your worth to clients. Make sure you communicate the quality of life you want and deserve.
Setting fixed freelance rates for projects
Besides your baseline rate, you may choose to offer standard pricing for packages. Consult various resources to make sure your project rates are comparable to competitors. Ask others in your industry for their introductory rates.
Checking these resources ensures you get paid your worth. Your rates are experience and skill-based, so charge accordingly. Don’t be afraid of asserting yourself when clients ask why you’re worth more. When you believe in your pricing, clients will, too.
Knowing what to charge on your first freelance contract is only the start
Starting a business isn’t impossible, but it’s not always straightforward, either. It requires a bit of grind and a lot of hustle. Once you calculate your freelance rate, you have a lot more to do.
Managing the hectic nature of freelance business is tiring and time-consuming. With the Hectic App, you’ll have professional support and a built-in community. Join Hectic today to start running your business like a pro.
