Guides / Price and get paid
How to set your freelance rate
Start from what you need to earn, not what others charge.
A freelance rate has to cover far more than a salary: taxes, unpaid time, benefits and business costs. Working backwards from your goal helps.
The math
- Decide the yearly take-home you need
- Add self-employment and income taxes
- Add business costs, health insurance and retirement savings
- Estimate billable hours: total working hours minus admin, marketing and time off
- Divide the total by billable hours
Then compare
Check what others with similar skills charge, and adjust. Many freelancers find they need to charge well above what a similar employee earns per hour.
General educational information, not tax advice. Rules change every year. Pocket Change Pros isn't paid by any bank, software company or tax service.