How to Set Freelance Rates That Work for You
If you’re fresh to freelancing or even if you’ve been at it for a time, setting your rates can be tricky. Trust too little and you’ll burn out attempting to make ends meet. Charge too much and you risk pricing yourself out of jobs. The sweet spot? It’s different for everyone, but here’s how to figure out what yours should be.
1. Start With Your Baseline
Before you actually look at market prices, figure out what you ought to earn to protect your expenses and hit your revenue goals.
Step 1: Add up your monthly living costs, rent, bills, food, insurance, etc.
Step 2: Factor in business expenses software, hardware, subscriptions, marketing, and taxes.
Step 3: Add your savings goals, retirement, emergency fund, and plans.
Step 4: Divide the total by how many billable hours you plan to work a month.
Let’s say your total monthly need is $5,000 and you plan to work 20 billable hours a week. That’s about 80 hours a month. Divide $5,000 by 80 = $62.50/hour. That’s your minimum viable rate. Not your final rate, just the floor.
2. Research the Market
Now that you know what you need, look at what others are charging in your niche.
Check platforms like:
- Upwork or Fiverr (for ranges)
- Freelance job boards
- Glassdoor (for employee salary benchmarks)
Also, ask around. Join freelancer communities and don’t be afraid to talk money. Transparency helps everyone. Your rate should be competitive, but not a race to the bottom. Aim to be in the upper-middle of the range if you have solid experience.
3. Factor in Experience and Value
If you’re a beginner, you might start lower to build your portfolio, but don’t undersell yourself for long. Once you have a few strong projects under your belt, raise your rate.
More experienced? Your rate should reflect not just time but value. If your work helps clients grow revenue, save time, or look more credible, price accordingly.
Here’s a tip: Think in terms of outcomes. If you’re a designer and your landing page helps boost conversions, that’s worth more than just an hourly design fee.
4. Choose a Pricing Model That Fits
Hourly rates are easy to start with, but aren’t always the most efficient long term. Here are your main options:
- Hourly – Best for short-term or open-ended projects. Downside: your income is capped by time.
- Project-based – You charge per deliverable. Great for defined scope work. You can work faster and earn more if you’re efficient.
- Retainers – Clients pay a flat fee for ongoing work. Good for stability and planning.
- Value-based – You price based on results or ROI. More advanced, but highly profitable.
Mix and match depending on the client and project. Just be clear about what’s included in your contracts.
5. Adjust for Non-Billable Time
Remember: You won’t be operating client hours 100% of the time. You’ll spend time on admin, marketing, invoicing, appointments, etc. That’s why full-time workers often have lower hourly productivity because they’re getting paid for all their time, including coffee breaks.
As a freelancer, you have to bake in those extra hours. That’s why your freelance rate is often 2–3x what you’d wish to make hourly at a job.
6. Know When to Raise Your Rates
It’s time to level up once you’re booked consistently, getting good results, and attracting better clients.
A few signs you should raise your rates:
- You’re fully booked or turning away work.
- Clients don’t blink at your current rate.
- You’re getting faster and more efficient.
- You’ve upgraded your skills or portfolio.
Raising your rates doesn’t mean losing clients—it often means attracting better ones. Just give a heads-up, and frame it around the value you’re offering.
7. Don’t Apologize for Your Rates
Confidence matters. If you act unsure about your pricing, clients will question it too. Stand by your rate, explain what’s included, and back it up with your work and results.
And if someone says, “That’s too expensive”? It’s not personal. They’re just not your client.
Final Thoughts
Setting freelance speeds isn’t about guessing or copying someone else’s digits. It’s about understanding your requirements, knowing your market, and charging founded on value, not just hours.
Start where you are, adjust as you grow, and remember: your rate is part of your brand. Make sure it reflects the quality of what you bring to the table.
