Most freelancers undercharge. Not because they can't find clients, but because they don't know how to calculate a rate that actually covers their costs and lets them build a business.
How much do you need to live on? Include: rent/mortgage, utilities, food, healthcare, transportation, retirement savings, taxes. Let's say that's $80,000/year after taxes.
Software subscriptions, internet, equipment, liability insurance, accountant, marketing, platform fees. Estimate $10,000/year for a solo freelancer.
Total needed: $80,000 + $10,000 = $90,000/year
You're not billing 40 hours/week. You're probably billing 20-25 hours if you're starting out (rest is prospecting, admin, invoicing, revisions).
50 weeks/year × 22 billable hours/week = 1,100 billable hours/year
$90,000 ÷ 1,100 hours = $82/hour minimum
Round to $85-90/hour to build in a buffer for non-billable time and negotiations.
Undercharging "to get experience": You'll burn out working 60 hours/week at $20/hr = $1,200/week before taxes. Not sustainable.
Not accounting for revision rounds: A "2-hour job" often takes 4 hours when you count back-and-forth. Build in a 1.5x multiplier.
Staying at the same rate too long: Raise rates 10% every 6 months as you get better clients and testimonials.
Enter your income goal and available hours to find your true minimum rate.
Freelance Rate Calculator →