Freelance Rate FAQ
How is the freelance hourly rate calculated?
Add your target annual salary, business expenses, and taxes, then divide by your billable hours per year. Billable hours are typically 50–60% of total working hours.
How many billable hours should I assume?
Most freelancers bill 15–25 hours per week. The rest goes to admin, marketing, and finding clients. Start with 20 billable hours per week.
Should I charge more than my salary equivalent?
Yes. As a freelancer you pay your own taxes, insurance, equipment, and unpaid time off. Rates are usually 1.5–2.5× the equivalent employee hourly wage.
What if a client says my rate is too high?
Never drop below your calculated minimum — that rate keeps you sustainable. Instead, reduce scope: offer fewer deliverables at your real rate.
Should I charge hourly or per project?
Use hourly math to compute the price, then quote per project — clients buy outcomes, not hours. Per-project pricing also rewards your efficiency: as you get faster, your effective hourly rate rises without renegotiating.
How do I handle clients who ask for a discount?
Never cut the rate — cut the scope instead, offering a smaller package at the lower budget. Discounting the rate teaches clients your price is negotiable; trimming deliverables keeps your rate intact and the project still profitable.
When should I raise my freelance rates?
Raise them for new clients every 6–12 months, or whenever you're booked solid for a month straight — full capacity means you're underpriced. Give existing clients 30 days' notice with a brief reason, not an apology.
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