How to Set Your Freelance Rate
Most freelancers price backwards. Start from the income you need, add taxes and non-billable time, and you get a rate that actually sustains you.
The mistake almost every freelancer makes
They look at a salaried friend's pay, divide by 2,080 hours, and quote that. The problem: freelancers have costs, taxes and unpaid time that employees do not. The result is a rate that looks competitive and quietly bankrupts them.
Start from what you need
Work backwards:
- Target take-home income — what you want to pay yourself.
- Business costs — software, equipment, insurance, accounting, office, marketing.
- Taxes and contributions — self-employment taxes are higher than employee ones.
- Realistic billable hours — usually 1,000–1,400 per year, not 2,080.
Then:
Rate = (Target income + costs + taxes) ÷ Billable hours
The freelance hourly rate calculator does this for you and shows the impact of holidays and non-billable time.
Why billable hours matter so much
| Assumption | Rate needed to earn €60,000 net |
|---|---|
| 2,080 billable hours | ~€29/h + costs |
| 1,200 billable hours | ~€50/h + costs |
| 900 billable hours | ~€67/h + costs |
Same income, wildly different rates. Be honest about admin, marketing, sales and holidays.
Pricing models
- Hourly — safest early on, when your estimates are rough.
- Day rate — simpler for consulting; often 6–8× the hourly rate.
- Project / fixed price — best for clients, riskiest for you until you know your true time.
- Retainer — recurring revenue that smooths cash flow.
Use the freelance rate calculator to map hourly, daily and project pricing consistently.
Raise your rate without losing clients
- Anchor to value, not to your hours: what is the outcome worth to the client?
- Increase on new clients first, then grandfather existing ones for a period.
- Package deliverables so price reflects outcomes, not time.
- Say no to work below your floor — that floor is your break-even point.
A quick sanity check
If a prospect haggles hard on price, you are either talking to the wrong client or you have not communicated the outcome. The rate is a symptom, not the cause.
Find your number
Use the free freelance hourly rate calculator to get a defensible rate — instant and private.