One of the first questions almost every freelancer eventually has to answer is:
"How much should I charge?"
It sounds like a simple question, but there isn't one number that works for every freelancer.
A graphic designer, web developer, video editor and social media manager may all work as freelancers, but their projects, expenses, skills and workloads can be completely different.
Even two freelancers offering the exact same service may need to charge different rates.
The better approach is to understand what your own work needs to earn and then use the project itself to determine the final price.
What do you actually need your freelance work to earn?
Before deciding what to charge a client, think about what you want your freelance work to produce.
For example, you might have a monthly income goal. That goal isn't necessarily the amount you want to put directly into your pocket. Your freelance income may also need to cover business expenses and other costs associated with doing the work.
Starting with your target income gives you a much stronger foundation than simply copying another freelancer's rate.
Don't count only the hours spent doing the work.
One of the easiest mistakes freelancers make is assuming that every working hour is a billable hour.
A project can involve much more than producing the final deliverable.
- Finding and communicating with clients
- Preparing proposals and quotes
- Meetings and consultations
- Planning the project
- Research
- Revisions
- Administration and invoicing
- Marketing and finding new clients
This is why you shouldn't assume that all the hours available to you each month can be sold directly to clients.
Build a rate from your own numbers.
A useful starting framework is to combine your target income and business costs, then compare that against the number of hours you realistically expect to bill.
÷
Realistic billable hours
= starting hourly rate
This isn't meant to produce a perfect market price. It's a starting point that helps you understand the economics behind your rate.
Once you have that starting point, you can adjust your project price based on the scope, complexity and circumstances of the work.
Should freelancers charge by the hour or by the project?
Both approaches can work.
Hourly pricing makes the relationship between time and money straightforward. If a project takes longer, the client pays for more hours according to the agreed arrangement.
Project pricing gives the client a clear total cost and allows you to price the outcome rather than simply selling individual hours.
For many freelancers, having an internal hourly rate can still be useful even when the client receives a project-based quote.
You don't have to show the client your internal calculation for it to be useful.
The final price should reflect the whole scope.
Imagine you're a graphic designer and a client asks for a social-media campaign.
The deliverable might sound simple, but the project could involve researching the brand, creating multiple concepts, producing several designs, communicating with the client and handling revisions.
The same principle applies across freelance work.
Scope
What exactly needs to be delivered?
Time
How much work will the project realistically require?
Complexity
How difficult or specialised is the work?
Revisions
How much feedback and iteration is expected?
Your rate has to account for the cost of doing business.
Freelancing isn't just about the money that appears in your account after completing a project.
Depending on your work, you may have expenses related to software, equipment, internet, transportation, advertising, paid assets, subscriptions or other business requirements.
If you ignore these costs completely, your apparent rate may look attractive while the amount you actually keep is much lower.
Your experience can change how you position your work.
Experience isn't the only factor that determines a freelance price, but it can influence the type of work you can confidently take on and the value you can provide.
Specialisation can also matter.
A freelancer who specialises in a particular industry or type of problem may be positioned differently from someone offering a broad range of general services.
The goal isn't simply to increase your price because you've been freelancing longer. Your positioning should reflect the work you can actually deliver.
Another freelancer's price isn't necessarily your price.
Looking at what other freelancers charge can be useful for understanding the market.
But copying another person's rate without understanding their circumstances can lead to problems.
They may have different expenses, experience, clients, workload, skills or income goals.
Use market prices as information — not as the entire foundation of your pricing strategy.
A clear scope protects both you and the client.
A price becomes much harder to manage when the client isn't sure what they're actually paying for.
Before starting the project, make the important details clear.
- What will be delivered?
- How many revisions are included?
- What isn't included?
- When will the work be delivered?
- What happens if the scope changes?
- What happens after the project is completed?
Clear boundaries can prevent a small project from gradually turning into a much larger one without the price changing with it.
A good freelance rate starts with understanding your work.
There isn't a universal freelance rate that everyone should use.
Your starting point should come from what you need your work to earn, the amount of time you can realistically bill and the costs involved in providing your service.
From there, consider the scope and complexity of each project and make sure the final price reflects the work you're actually agreeing to do.
And remember: pricing is not something you have to get perfect on your first attempt. As you gain experience, learn more about your market and understand your own numbers, you can refine your rates.
Pricing a specific service?
If you already know what service you're offering, explore a more specific guide.
Freelance pricing
How do I know how much to charge as a freelancer?
Start by considering your target income, business costs and realistic billable hours. Then adjust your project price according to the scope and complexity of the work.
Should beginners charge less?
Being new to freelancing doesn't mean you should automatically choose an extremely low price. Your rate should still account for the time and resources required to complete the work.
Is hourly pricing better for freelancers?
Not necessarily. Hourly and project-based pricing can both work. The best approach depends on the type of service, project and relationship with the client.
Should I tell clients my hourly rate?
That's up to you and the type of pricing arrangement you're using. You can use an internal hourly rate to calculate a project price without necessarily presenting the client with an hourly quote.
Can I change my freelance rate later?
Yes. Your pricing can evolve as your skills, experience, workload, costs and understanding of your market change.