I set a freelance rate by calculating the business required to support the work, then checking whether the market and client value can sustain it. I do not divide a desired salary by working hours and stop there.
I calculate billable capacity
Not every hour is billable. Marketing, proposals, administration, learning, invoicing, and unpaid leave consume time. I estimate realistic billable hours across the year.
I include business costs
I account for taxes, insurance, software, equipment, professional services, payment fees, benefits, and savings. The rate must support expenses an employer might otherwise cover.
I choose the pricing model
Hourly pricing fits uncertain scope or ongoing support. Project pricing can reward efficiency when deliverables and revisions are defined. Retainers work for predictable recurring capacity. I do not use one model for every engagement.
I research comparable work
I compare experience level, market, complexity, urgency, client type, and deliverable. A broad online average is only a reference point. I also consider the cost of the problem and the consequences of error.
I define scope before quoting
I clarify deliverables, timeline, meetings, revisions, dependencies, rights, expenses, and payment schedule. A profitable rate can become unprofitable under unlimited scope.
My rate check
- Does it cover non-billable time and expenses?
- Can I deliver the scope at the expected quality?
- Is the client buying hours, an output, or ongoing access?
- What changes the price?
- What is my minimum acceptable project value?
I review rates as demand, expertise, and costs change. A rate is not a judgment of personal worth; it is a business decision about a defined service.