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!
A guide to calculating your freelance rate

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Do you find yourself wondering how much to charge clients for your work? Determining your worth as a freelancer depends on variables such as experience, confidence, and the type of industry you're looking to freelance in. It would be handy to have a guide to calculate your rate and get paid what you're worth. Fortunately, we have a guide on the factors influencing freelance rate calculation.

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 and 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 hourly rate calculation for freelancers:

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 for setting fair freelance rates. You may find cause to increase your basic hourly rate under a few circumstances.

If you have niche expertise on topics or high-value industry skill sets, you can charge more rather than needing to rely on competitive freelance pricing. 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 are charging what you're worth as a freelancer. 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 busy nature of freelance business is tiring and time-consuming. With the Moxie App, you'll have professional support and a built-in community. Join Moxie today to start running your business like a pro.

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Moxie
Our team of career freelancers writes about best invoice practices, what makes a great client, and repeats the mantra, "never work without a contract." We're opinionated about the future of work and will always be on the side of freelancers.
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