The Ultimate Guide to Setting Your Freelance Rates

Setting your freelance rates is one of the most important decisions you will make. Too low, and you will burn out. Too high, and you might struggle to find clients. Here is how to find your sweet spot.

Start with your target income How much do you want to earn per year? Factor in taxes, insurance, equipment, software, and time off. A common formula: Target Income / (Billable Hours per Year) = Minimum Hourly Rate.

Research the market Look at what others in your field charge. Sites like Glassdoor and industry surveys can give you benchmarks. Remember that rates vary significantly by specialization and location.

Consider value-based pricing Instead of hourly rates, consider pricing based on the value you deliver. A logo that generates millions in revenue for a company is worth more than 10 hours of design time.

Track your actual time Use a tool like Builtomate to track how long projects really take. This data is invaluable for accurate project quotes and identifying where you're undercharging.

Raise your rates regularly As you gain experience and build your portfolio, your rates should increase. Annual rate increases of 10-20% are reasonable for established freelancers.