{"id":3615,"date":"2023-07-24T14:00:00","date_gmt":"2023-07-24T12:00:00","guid":{"rendered":"https:\/\/www.freelancermap.com\/blog\/freelancer-tips-how-to-set-your-rates-as-a-freelancer\/"},"modified":"2025-08-13T10:54:05","modified_gmt":"2025-08-13T08:54:05","slug":"freelancer-tips-how-to-set-your-rates-as-a-freelancer","status":"publish","type":"post","link":"https:\/\/www.freelancermap.com\/blog\/freelancer-tips-how-to-set-your-rates-as-a-freelancer\/","title":{"rendered":"How to Set Your Rates as a Freelancer"},"content":{"rendered":"<div class=\"wp-block-post-date__modified-date wp-block-post-date\"><time datetime=\"2025-08-13T10:54:05+02:00\">August 13, 2025<\/time><\/div>\n\n\n<p><\/p>\n\n\n\n<p><strong>Whether you\u2019re an engineer, a copywriter, or a marketing expert, all freelancers have one challenge in common: setting a reasonable hourly rate. Beginners in particular often have a hard time deciding their hourly rate. Read on to avoid making rookie mistakes when it comes to setting your freelance rates!<\/strong><\/p>\n\n\n\n<p>Oftentimes, freelancers <strong>undervalue themselves<\/strong> and offer their services for cheap &#8211; especially at the beginning of their careers. They fail to consider the <strong>operational costs<\/strong> of their business and\/or the ability to <strong>cover their monthly expenses<\/strong> throughout the year.&nbsp;In addition, some of them are still stuck in the \u201cemployee\u201d mindset.&nbsp;<\/p>\n\n\n\n<p>According to our <a href=\"https:\/\/www.freelancermap.com\/market-study\">freelancer study<\/a>, one thing is certain: high qualifications and years of experience equal higher hourly rates.&nbsp;However, <strong>good communication<\/strong> and <strong>negotiation skills<\/strong> can also affect freelancer rates.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/www.freelancermap.com\/blog\/wp-content\/uploads\/2023\/07\/freelancers-hourly-rate-based-on-education-freelancer-study-freelancermap-1.png\"><img decoding=\"async\" width=\"1024\" height=\"381\" data-src=\"https:\/\/www.freelancermap.com\/blog\/wp-content\/uploads\/2023\/07\/freelancers-hourly-rate-based-on-education-freelancer-study-freelancermap-1-1024x381.png\" alt=\"Freelancers hourly rate based on their education according to the results of the Freelancer Study 2025 by freelancermap\" class=\"wp-image-46382 lazyload\" data-srcset=\"https:\/\/www.freelancermap.com\/blog\/wp-content\/uploads\/2023\/07\/freelancers-hourly-rate-based-on-education-freelancer-study-freelancermap-1-1024x381.png 1024w, https:\/\/www.freelancermap.com\/blog\/wp-content\/uploads\/2023\/07\/freelancers-hourly-rate-based-on-education-freelancer-study-freelancermap-1-300x112.png 300w, https:\/\/www.freelancermap.com\/blog\/wp-content\/uploads\/2023\/07\/freelancers-hourly-rate-based-on-education-freelancer-study-freelancermap-1-768x286.png 768w, https:\/\/www.freelancermap.com\/blog\/wp-content\/uploads\/2023\/07\/freelancers-hourly-rate-based-on-education-freelancer-study-freelancermap-1-1536x572.png 1536w, https:\/\/www.freelancermap.com\/blog\/wp-content\/uploads\/2023\/07\/freelancers-hourly-rate-based-on-education-freelancer-study-freelancermap-1-2048x762.png 2048w, https:\/\/www.freelancermap.com\/blog\/wp-content\/uploads\/2023\/07\/freelancers-hourly-rate-based-on-education-freelancer-study-freelancermap-1-1920x714.png 1920w, https:\/\/www.freelancermap.com\/blog\/wp-content\/uploads\/2023\/07\/freelancers-hourly-rate-based-on-education-freelancer-study-freelancermap-1-720x268.png 720w, https:\/\/www.freelancermap.com\/blog\/wp-content\/uploads\/2023\/07\/freelancers-hourly-rate-based-on-education-freelancer-study-freelancermap-1-580x216.png 580w, https:\/\/www.freelancermap.com\/blog\/wp-content\/uploads\/2023\/07\/freelancers-hourly-rate-based-on-education-freelancer-study-freelancermap-1-320x119.png 320w\" data-sizes=\"(max-width: 1024px) 100vw, 1024px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1024px; --smush-placeholder-aspect-ratio: 1024\/381;\" \/><\/a><\/figure>\n\n\n\n<p>Finding it difficult to perform realistic calculations on <strong>how do you calculate your hourly rate?<\/strong> <\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><a href=\"#Calculation\">How to calculate and work out freelance rates<\/a>\n<ol class=\"wp-block-list\">\n<li><a href=\"#Expenses\">Calculate expenses<\/a><\/li>\n\n\n\n<li><a href=\"#WorkingDays\">Calculate working days<\/a><\/li>\n\n\n\n<li><a href=\"#MAR\">Calculate MAR<\/a><\/li>\n<\/ol>\n<\/li>\n\n\n\n<li><a href=\"#FreelanceRatesTable\">Freelance rates by industry<\/a><\/li>\n\n\n\n<li><a href=\"#PricingOptions\">Pricing projects as a freelancer<\/a>\n<ol class=\"wp-block-list\">\n<li><a href=\"#HourlyDaily\">Hourly\/daily billing<\/a><\/li>\n\n\n\n<li><a href=\"#Fixed\">Fixed-price<\/a><\/li>\n\n\n\n<li><a href=\"#Retainer\">Retainers<\/a><\/li>\n<\/ol>\n<\/li>\n\n\n\n<li><a href=\"#Tips\">General tips on how to price yourself as a freelancer<\/a><\/li>\n\n\n\n<li><a href=\"#dont-undersell-freelance-services\">How to stop underselling yourself<\/a>\n<ul class=\"wp-block-list\">\n<li><a href=\"#signs-you-are-underselling-freelance-work\">Signs you are underselling your freelancer work<\/a><\/li>\n\n\n\n<li><a href=\"#how-to-compete-with-freelancers-who-have-lower-prices\">How to compete with freelancers who have lower prices than you<\/a><\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><a href=\"#conclusion\">Conclusion<\/a><\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Calculation\">How to calculate freelance rates<\/h2>\n\n\n\n<p>Firstly, your <strong>hourly rate calculation<\/strong> should take into account any and all <strong>monthly costs<\/strong> and <strong>expenses<\/strong> that you as a freelancer might have. This includes both <strong>private expenses<\/strong> (e.g. rent, food, clothes) and<strong> professional ones<\/strong> (e.g. office space, working materials, taxes).&nbsp;<\/p>\n\n\n\n<p>According to our last <a href=\"https:\/\/www.freelancermap.com\/market-study\">freelancer survey<\/a>, the <strong>average freelancer rate<\/strong> among <strong>IT professionals<\/strong> in 2025 is <strong>\u20ac98\/hour<\/strong>.\u00a0While your own rate may differ, you can use this value as a basis for your own calculation.<\/p>\n\n\n\n<p>Later on, we\u2019ll take a closer look at the profiles of the freelancers who answered the survey &#8211; predominantly working in<em> SAP, consulting and management, IT infrastructure, development, engineering, graphics, content, and media<\/em>.&nbsp;<\/p>\n\n\n\n<div class=\"wp-block-group has-background\" style=\"background-color:#b1c3b7\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p class=\"has-text-align-center has-background\" style=\"background-color:#b1c3b7;font-size:18px\">Join our freelancer community today! <br>Create your profile in just 2 minutes and start attracting new clients.<\/p>\n\n\n<div class=\"su-button-center\"><a href=\"https:\/\/www.freelancermap.com\/registration?ref=blog-com-calculate-rate\" class=\"su-button su-button-style-default\" style=\"color:#222222;background-color:#FCF2DB;border-color:#cac2b0;border-radius:20px\" target=\"_self\"><span style=\"color:#222222;padding:0px 20px;font-size:16px;line-height:32px;border-color:#fdf6e6;border-radius:20px;text-shadow:none\"> <strong>Sign up for free<\/strong><\/span><\/a><\/div><\/br><\/p>\n<\/div><\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"Expenses\">#1 Calculate expenses<\/h3>\n\n\n\n<p>The first, most crucial part of defining your freelance rate is to <strong>calculate all your expenses<\/strong>.&nbsp;<\/p>\n\n\n\n<p>Take into account<strong> any and all costs <\/strong>from less obvious ones such as <em>internet fees, website hosting, and software costs<\/em> to more general costs such as <em>rent, utilities, office equipment, legal and accounting, taxes, insurance, etc<\/em>.&nbsp;<\/p>\n\n\n\n<p class=\"has-background\" style=\"background-color:#f3f3f3\">\ud83d\udcd6 <strong>Interesting read<\/strong>: <a href=\"https:\/\/www.freelancermap.com\/blog\/the-most-interesting-types-of-freelancing-insurance\/\">What insurance do you need as a freelancer?<\/a><\/p>\n\n\n\n<p>Make a <strong>list of every little expense<\/strong> you incur as a freelancer. <\/p>\n\n\n\n<p>It can be easy to forget small things such as the cost of office supplies, certifications, travel, marketing, branding, etc, so make sure you make a note of these expenses as well.&nbsp;<\/p>\n\n\n\n<p>In addition, your <strong>salary<\/strong> should be counted as an expense. Think of what would be your desired income and add it to your expenses.<\/p>\n\n\n\n<p class=\"has-background\" style=\"background-color:#f3f3f3\"><strong>Tip: <\/strong>If you\u2019re unsure about what some of the expenses are going to be yet as a new freelancer, reach out to freelancers within your industry and get talking!<\/p>\n\n\n\n<p>Please note<strong> income taxes<\/strong> change a lot from country to country. <\/p>\n\n\n\n<p>As an example, <a href=\"https:\/\/www.freelancermap.com\/blog\/freelancing-in-germany\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"freelancers in Germany (opens in a new tab)\">freelancers in Germany<\/a> can expect to pay between 8% to 42% on <strong>income tax rates<\/strong> depending on the total income.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"WorkingDays\">#2 Calculate working days<\/h3>\n\n\n\n<p>Now, it is advisable to determine <strong>how many days per week, month, or year<\/strong> you are looking to do <strong>freelance work<\/strong>. <\/p>\n\n\n\n<p>Even if some <a href=\"https:\/\/www.freelancermap.com\/blog\/work-life-balance-for-freelancers\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"freelancers often work through the weekend (opens in a new tab)\">freelancers often work through the weekend<\/a>, this should not become the norm &#8211; especially if you have a family waiting for you! <\/p>\n\n\n\n<p>Additionally, friends that work as full-time employees usually only have time to meet up on the weekends, so it\u2019s important to have this <strong>time off for socializing<\/strong> (at least occasionally!)<\/p>\n\n\n\n<p>In order to <strong>calculate how many working days<\/strong> you have available per year you must consider potential sick days, days you\u2019ll invest in further training, vacation days, etc.<\/p>\n\n\n\n<p>In most cases the number of days you get from your calculation will fluctuate. <\/p>\n\n\n\n<p>To be on the safe side, we recommend you<strong> include a few extra days off<\/strong> rather than overestimate your working days. This allows you to <strong>make smarter financial choices<\/strong>.&nbsp;<\/p>\n\n\n\n<p class=\"has-background\" style=\"background-color:#f3f3f3\"><strong>Tip:<\/strong> Freelancers should not neglect office work, such as completing tax returns and bookkeeping, communication with clients, etc.<\/p>\n\n\n\n<p><strong> How to calculate the number of days of work available: <\/strong><\/p>\n\n\n\n<figure class=\"wp-block-table is-style-regular\"><table><thead><tr><th class=\"has-text-align-center\" data-align=\"center\"><\/th><th class=\"has-text-align-center\" data-align=\"center\"> Days<\/th><\/tr><\/thead><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Calendar days <\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\">365<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Weekends<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\">-104<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Bank holidays<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\">-10<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Vacation<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\">-25<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Sickness<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\">-5<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong> Total working days <\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>221<\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<p>As a result of our calculation, you have <strong>221 days free for work each year<\/strong>. Considering an 8-hour working day, that would be <strong>1.768 hours\/year<\/strong>. <\/p>\n\n\n\n<p>But as a freelancer, you must also consider the time pursuing new clients, phone calls and client communication, administrative work, etc.<\/p>\n\n\n\n<p>Let\u2019s say you can only spend 80% of your time actually working. That would be 6.4 hours a day.<\/p>\n\n\n\n<p class=\"has-text-align-center\" style=\"font-size:17px\"><strong>221 days x 6,4 hours \/ day = 1.414 hours<\/strong><\/p>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"MAR\">#3 Calculate your Minimum Acceptable Rate (MAR)<\/h3>\n\n\n\n<p>Once you\u2019ve calculated your<strong> expenses<\/strong> and <strong>working days<\/strong>, it\u2019s time to<strong> set your MAR<\/strong> &#8211; or <strong>minimum acceptable rate<\/strong>. This is the absolute lowest hourly rate you would be willing to work for.&nbsp;<\/p>\n\n\n\n<p>By analyzing your costs and workdays, you can calculate the MAR that best works for you.&nbsp;<\/p>\n\n\n\n<p>While we do not recommend working for your MAR, this is a good starting point for freelancers looking to get a foot into the freelancing world.&nbsp;<\/p>\n\n\n\n<p>How do you calculate your MAR?<\/p>\n\n\n\n<p class=\"has-text-align-center\" style=\"font-size:17px\"><strong>((living costs + overhead business costs + salary) \/ (hours worked a year)) + tax<\/strong><\/p>\n\n\n\n<p>Let\u2019s run an example:<\/p>\n\n\n\n<p><strong><em>Expenses: $7,000 x 12 months = $84,000<\/em><br><em>Profit margin (salary): 25% = $21,000<\/em><br><em>Cost of doing business = $84,000 + $21,000 = $105,600<\/em><\/strong><br><br><em><strong>MAR: $105,000 \/ 1,414 hours = $74 per hour<\/strong><\/em><\/p>\n\n\n\n<p>This equation gives roughly your <strong>minimum hourly rate<\/strong>. As mentioned above, this is a good starting point but it can always be hard to take into account all the different factors. <\/p>\n\n\n\n<p>As you <strong>develop your freelance skills<\/strong>, you may <strong>increase your MAR<\/strong> to reflect your skills and knowledge.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"FreelanceRatesTable\">Freelance market rates: How much should you charge in your industry?<\/h2>\n\n\n\n<p>When working out <strong>how to price your work as a freelancer<\/strong> and deciding what would be your hourly rate, you must also analyze your <strong>niche and industry<\/strong>.<\/p>\n\n\n\n<p>Look at the competition: <em>How much do fellow freelancers charge? What are their hourly rates?<\/em><\/p>\n\n\n\n<p>Some freelancers <strong>post their rates online<\/strong> (or price their <a href=\"https:\/\/www.freelancermap.com\/blog\/how-to-package-your-freelance-services-in-4-simple-steps\/\">freelance services packages<\/a>). Others you could just <strong>ask<\/strong>, keeping in mind they might have an interest to over- or undersell themselves.<\/p>\n\n\n\n<p>But it\u2019s not just important to know what the <a href=\"https:\/\/www.freelancermap.com\/freelancers-directory.html\">freelance competition<\/a> gets, more so why it gets it. Find out what they are <strong>charging for similar work and for similar ideal clients<\/strong>.<\/p>\n\n\n\n<p>Compare yourself to those working in your field and determine how your experience and work stacks up to theirs.&nbsp;<\/p>\n\n\n\n<p>This outsider information will ensure <strong>your freelance rate<\/strong> fits in with <strong>industry standards<\/strong>. Moreover, you\u2019ll get an idea of what potential clients are ok paying.<\/p>\n\n\n\n<p>Of course, you can help yourself with <strong>average salary<\/strong> and <strong>hourly rate research <\/strong>conducted online. So here are the insights gathered on freelancermap and our freelancer survey.<\/p>\n\n\n\n<p><strong>How much do freelancers charge per hour?<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-left\" data-align=\"left\"><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>Consulting &amp; Management<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>SAP<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>IT infrastructure<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>Development<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>Engineering<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>Content &amp; Media<\/strong><\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">Freelancer <br>Survey 2025<\/td><td class=\"has-text-align-center\" data-align=\"center\">\u20ac120<\/td><td class=\"has-text-align-center\" data-align=\"center\">\u20ac113<\/td><td class=\"has-text-align-center\" data-align=\"center\">\u20ac98<\/td><td class=\"has-text-align-center\" data-align=\"center\">\u20ac92<\/td><td class=\"has-text-align-center\" data-align=\"center\">\u20ac91<\/td><td class=\"has-text-align-center\" data-align=\"center\">\u20ac76<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">freelancermap index,<br>June 2024<\/td><td class=\"has-text-align-center\" data-align=\"center\">$87<\/td><td class=\"has-text-align-center\" data-align=\"center\">$94<\/td><td class=\"has-text-align-center\" data-align=\"center\">$87<\/td><td class=\"has-text-align-center\" data-align=\"center\">$74<\/td><td class=\"has-text-align-center\" data-align=\"center\">$83<\/td><td class=\"has-text-align-center\" data-align=\"center\">$60<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<p>You can <strong>research freelance rates<\/strong> for specific skills on your own. Using the <a href=\"https:\/\/www.freelancermap.com\/freelancers-directory.html\">freelancermap\u2019s&nbsp;directory<\/a>, type in your keyword to perform a search and the country you are interested in.&nbsp;<\/p>\n\n\n\n<p>On the right side, you will see a box indicating, for example, the <strong>average hourly rate of a web developer in Germany<\/strong>.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"653\" data-src=\"https:\/\/www.freelancermap.com\/blog\/wp-content\/uploads\/2021\/10\/average-hourly-rate-web-developer-germany-1024x653.png\" alt=\"Average hourly rate of a web developer in Germany\" class=\"wp-image-29933 lazyload\" data-srcset=\"https:\/\/www.freelancermap.com\/blog\/wp-content\/uploads\/2021\/10\/average-hourly-rate-web-developer-germany-1024x653.png 1024w, https:\/\/www.freelancermap.com\/blog\/wp-content\/uploads\/2021\/10\/average-hourly-rate-web-developer-germany-300x191.png 300w, https:\/\/www.freelancermap.com\/blog\/wp-content\/uploads\/2021\/10\/average-hourly-rate-web-developer-germany-768x490.png 768w, https:\/\/www.freelancermap.com\/blog\/wp-content\/uploads\/2021\/10\/average-hourly-rate-web-developer-germany-720x459.png 720w, https:\/\/www.freelancermap.com\/blog\/wp-content\/uploads\/2021\/10\/average-hourly-rate-web-developer-germany-580x370.png 580w, https:\/\/www.freelancermap.com\/blog\/wp-content\/uploads\/2021\/10\/average-hourly-rate-web-developer-germany-320x204.png 320w, https:\/\/www.freelancermap.com\/blog\/wp-content\/uploads\/2021\/10\/average-hourly-rate-web-developer-germany.png 1271w\" data-sizes=\"(max-width: 1024px) 100vw, 1024px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1024px; --smush-placeholder-aspect-ratio: 1024\/653;\" \/><\/figure>\n\n\n\n<p class=\"has-text-align-center has-background\" style=\"background-color:#f3f3f3;font-size:18px\"><strong>\ud83d\udca1 Want to explore more freelancer rates? <\/strong><br> \u00bb Check <a href=\"https:\/\/www.hellobonsai.com\/rates\/freelance?fp_ref=freelancermap\" target=\"_blank\" rel=\"noreferrer noopener\">Bonsai&#8217;s rate explorer<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"PricingOptions\">Pricing options for freelance projects<\/h2>\n\n\n\n<p>You have now calculated your <strong>minimum desired hourly rate<\/strong> and while it\u2019s good to know what your hours are worth, charging for your projects by the hour is normally not the best option for freelancers.<\/p>\n\n\n\n<p>There are different pricing strategies you could use to price freelance projects:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"HourlyDaily\">#1 Hourly \/ daily billing<\/h3>\n\n\n\n<p><strong>Hourly billing<\/strong> is not good for profit or for efficiency. It requires you to estimate and track every single task and it\u2019s a methodology that <strong>doesn\u2019t work for experienced freelancers<\/strong>.&nbsp;<\/p>\n\n\n\n<p>Having the <strong>experience and expertise<\/strong> will make the freelancer <strong>perform the task quickly<\/strong> but this doesn\u2019t mean the knowledge only costs 10 minutes. <\/p>\n\n\n\n<p>10 minutes it is what it took the freelancer to complete the task but not what is worth it.<\/p>\n\n\n\n<p>We recommend <strong>running away<\/strong> from this <strong>pricing strategy<\/strong> because it simply does not take into account <strong>years of knowledge and experience<\/strong>. If you have a client looking for a time-based price, you could offer <strong>daily billing<\/strong> instead.<\/p>\n\n\n\n<p>Please note your daily rate doesn\u2019t have to be an 8h x hourly rate. The number of hours you work is solely up to you and it allows you to adapt and modify the rate for bigger or smaller projects.&nbsp;<\/p>\n\n\n\n<p>When <strong>billing your project daily<\/strong>, you can sell a package of several days at a cheaper rate. However, we\u2019d recommend you <strong>limit your weekly availability to 3 &#8211; 4 days<\/strong> as this allows you time for other projects.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"Fixed\">#2 Fixed-price per project<\/h3>\n\n\n\n<p><strong>Fixed-price pricing<\/strong> is the preferred option for freelancers as it\u2019s <strong>based on the value<\/strong> provided.<\/p>\n\n\n\n<p>With this pricing, the <strong>freelancer guarantees the client <\/strong>that the<strong> job agreed to will be completed<\/strong>. As a freelancer, you price your work based on the value of the work instead of pricing based on time.&nbsp;<\/p>\n\n\n\n<p>Ideally, you should show the client that by doing X for them, they will get Y leads or Z% increase in revenue. In essence, show them why your work is priced the way it is.&nbsp;<\/p>\n\n\n\n<p class=\"has-background\" style=\"background-color:#f3f3f3\"><strong>Tip<\/strong>: Always sign a contract and ask your client to <a href=\"https:\/\/www.freelancermap.com\/blog\/5-simple-tricks-to-get-clients-to-pay-you-upfront\/\">pay a deposit upfront<\/a> before you start working on the project.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"Retainer&quot;\">#3 Retainers<\/h3>\n\n\n\n<p><a href=\"https:\/\/www.freelancermap.com\/blog\/freelance-retainer-agreement\/\">Freelance Retainer agreements<\/a> can be a great <strong>safety net for freelancers<\/strong> as these guarantee a certain amount of work for a client for an agreed amount of time.<\/p>\n\n\n\n<p>It tends to be on a <strong>weekly or a monthly basis <\/strong>and it helps freelancers with having a <strong>consistent income.<\/strong> As the work to be done is discussed upfront, it allows freelancers to schedule their time ahead and it can be great for productivity.<\/p>\n\n\n\n<p>If the client has consistent work during a period of time you might want to suggest <strong>signing a retainer agreement<\/strong> to the client.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Tips\">General tips on setting your freelance rates<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Your rates flexible, adapt them as you gain experience<\/li>\n\n\n\n<li>Choose different pricing strategies for different clients<\/li>\n\n\n\n<li>Talk to other freelancers to get real market insights<\/li>\n\n\n\n<li>If you reduce your price, it\u2019s because you reduce project scope<\/li>\n\n\n\n<li>Increase prices for rush projects (See <a href=\"https:\/\/www.freelancermap.com\/blog\/how-to-use-freelance-rush-fees\/\">how to use rush fees<\/a>)<\/li>\n\n\n\n<li>Always ask for a deposit for fixed-projects<\/li>\n\n\n\n<li>Don\u2019t only pay you, make sure you make a profit to grow your business<\/li>\n\n\n\n<li>Trust your value even if there are cheaper freelancers out there<\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img decoding=\"async\" width=\"1024\" height=\"576\" data-src=\"https:\/\/www.freelancermap.com\/blog\/wp-content\/uploads\/2024\/02\/How-to-Set-Your-Rates-as-a-Freelancer-1024x576.png\" alt=\"Tips on setting your freelance rates \" class=\"wp-image-41350 lazyload\" data-srcset=\"https:\/\/www.freelancermap.com\/blog\/wp-content\/uploads\/2024\/02\/How-to-Set-Your-Rates-as-a-Freelancer-1024x576.png 1024w, https:\/\/www.freelancermap.com\/blog\/wp-content\/uploads\/2024\/02\/How-to-Set-Your-Rates-as-a-Freelancer-300x169.png 300w, https:\/\/www.freelancermap.com\/blog\/wp-content\/uploads\/2024\/02\/How-to-Set-Your-Rates-as-a-Freelancer-768x432.png 768w, https:\/\/www.freelancermap.com\/blog\/wp-content\/uploads\/2024\/02\/How-to-Set-Your-Rates-as-a-Freelancer-1536x864.png 1536w, https:\/\/www.freelancermap.com\/blog\/wp-content\/uploads\/2024\/02\/How-to-Set-Your-Rates-as-a-Freelancer-2048x1152.png 2048w, https:\/\/www.freelancermap.com\/blog\/wp-content\/uploads\/2024\/02\/How-to-Set-Your-Rates-as-a-Freelancer-1920x1080.png 1920w, https:\/\/www.freelancermap.com\/blog\/wp-content\/uploads\/2024\/02\/How-to-Set-Your-Rates-as-a-Freelancer-720x405.png 720w, https:\/\/www.freelancermap.com\/blog\/wp-content\/uploads\/2024\/02\/How-to-Set-Your-Rates-as-a-Freelancer-580x326.png 580w, https:\/\/www.freelancermap.com\/blog\/wp-content\/uploads\/2024\/02\/How-to-Set-Your-Rates-as-a-Freelancer-320x180.png 320w\" data-sizes=\"(max-width: 1024px) 100vw, 1024px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1024px; --smush-placeholder-aspect-ratio: 1024\/576;\" \/><\/figure><\/div>\n\n\n<h2 class=\"wp-block-heading\" id=\"dont-undersell-freelance-services\">DON\u2019T undersell your freelance services<\/h2>\n\n\n\n<p>As a freelancer, you should <strong>never resort to underselling your services<\/strong>. Not only can this have negative effects on your career, it can also stem personal growth.&nbsp;<\/p>\n\n\n\n<p>By devaluing your services, you essentially let clients know that your work is not valuable or that you have lesser skills and expertise than you actually do. Additionally, <strong>by setting lower rates, you tend to attract the wrong clients<\/strong> &#8211; ones who prioritise cost over quality and are less inclined to increase your rates over time.&nbsp;&nbsp;<\/p>\n\n\n\n<p>Underselling yourself can also help prevent you from investing in yourself &#8211; a fact that is important if you want to grow professionally and better your finances.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"signs-you-are-underselling-freelance-work\">Signs you are underselling your freelancer work&nbsp;<\/h3>\n\n\n\n<p>Figuring out if you\u2019re overcharging your clients isn\u2019t hard \u2013 you just won\u2019t get hired for the job or will outright be questioned about your pricing.&nbsp;<\/p>\n\n\n\n<p>Underpricing, on the other hand, is a bit difficult to gauge. You\u2019ll very rarely be told by your client that your freelance rates are too low or that you\u2019re underpricing yourself. They run a business and part of that is trying to get the best deals possible.&nbsp;<\/p>\n\n\n\n<p>But, as stated above, underpricing yourself is one of the biggest mistakes that a freelancer can make. <strong>Lack of knowledge about the industry<\/strong> or a <strong>lack of confidence<\/strong> in their abilities are the most common reasons why freelancers do this. <strong>Trying too hard to win a particular project<\/strong> is also another reason which is the sort of attitude that clients can prey on.<\/p>\n\n\n\n<p>Let\u2019s take a look at some of the<strong> signs of underpricing<\/strong> that you need to be on the lookout for:&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>1. Projects tend to take more time than planned<\/strong><\/h4>\n\n\n\n<p>If you find yourself often underestimating the amount of time you\u2019ll have to put in to get your freelance project done, chances are, you could be asking for less money than you should. If you tell a client it\u2019s going to take you 20 hours to complete a project, they will pay you for exactly 20 hours. You can\u2019t tell them that it actually took you 30 hours afterwards, because everyone will assume you were just slacking off.&nbsp;<\/p>\n\n\n\n<p>The way to avoid this is to always very carefully and realistically <strong>consider how long a project will take<\/strong> in advance. <strong>Don\u2019t try to impress<\/strong> your clients by showing them how fast you are. Ask for a fair price for the time you are going to spend and deliver a quality product \u2013 that\u2019s the best way to impress them without charging too little.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>2. Your competition charges more<\/strong><\/h4>\n\n\n\n<p>Before you affix yourself with a price, consider <strong>researching what your competition is charging<\/strong>, specifically, your direct competition. These are the freelancers who work in the same industry as you, have similar experience and are applying for the same projects you are. If most of them are charging more than what you are, you are probably underpricing yourself.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>3. Your hourly rates haven\u2019t budged for years<\/strong><\/h4>\n\n\n\n<p>The <strong>prices <\/strong>for goods and services <strong>are constantly fluctuating<\/strong> due to supply and demand. This theory also applies to freelancing because of the constant development that a freelancer goes through.<\/p>\n\n\n\n<p>As a freelancer, you\u2019re constantly learning new things, working on different projects and getting more experience. And so, if everything about your work has changed in the last couple of years but your rates have stayed the same, you should <strong>consider raising them<\/strong>.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>4. Someone other than you sets your rates<\/strong><\/h4>\n\n\n\n<p>Letting clients determine what your time and work is worth will often lead to underpayment and you underpricing your rates. Don\u2019t be afraid to talk to your clients about how much you\u2019d like to get paid and why. More often than not, clients will accept the number you give them if they expect to get quality work in return.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>5. You feel resentment towards your work<\/strong><\/h4>\n\n\n\n<p>If you feel <strong>underappreciated or resentful towards your work<\/strong>, it\u2019s a clear sign that you may not be charging enough. You may start to feel like the time and effort you put into your work far outweigh the compensation you get in return &#8211; and this is especially true if you are putting in extra hours.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>6. You are on the verge of burnout<\/strong><\/h4>\n\n\n\n<p>Constantly <strong>taking on too much work<\/strong> but struggling to make ends meet is another indicator that you\u2019re underselling yourself. With a packed schedule, there\u2019s little time for you to <a href=\"https:\/\/www.freelancermap.com\/blog\/tips-freelance-holiday\/\">take time off<\/a> for yourself. This can lead to fatigue and eventual <a href=\"https:\/\/www.freelancermap.com\/blog\/freelancer-burnout\/\">burnout<\/a>.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"how-to-compete-with-freelancers-who-have-lower-prices\">How to compete with freelancers who have lower prices than you<\/h3>\n\n\n\n<p>With freelancing on the rise, freelancers now have more competition to deal with than ever before. According to <a href=\"https:\/\/www.statista.com\/statistics\/685468\/amount-of-people-freelancing-us\/\" target=\"_blank\" rel=\"noreferrer noopener\">statistics<\/a>, there were an estimated <strong>64 million people doing freelance work in the United States<\/strong> in 2023 and 27 million in the <a href=\"https:\/\/www.statista.com\/statistics\/946989\/self-employed-persons-in-eu\/\" target=\"_blank\" rel=\"noreferrer noopener\">European Union<\/a>.&nbsp;<\/p>\n\n\n\n<p>In addition, according to the results of a new Gen Z survey from Upwork Research Institute, over the past decade, almost 1 million more people each year have done freelance work.<\/p>\n\n\n\n<p>It can be <strong>hard to stand out<\/strong> when there are a lot of freelancers competing for the same job you are. To deal with this, freelancers must think like their clients: Whether they pay 20 or even 50 percent less for a given project, it won\u2019t do them any good if the project turns out bad or doesn\u2019t get finished at all.&nbsp;<\/p>\n\n\n\n<p>You have to <strong>focus on quality and value<\/strong> and stick to your price. Here are a few ways to do it:<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>1. Underline your value<\/strong><\/h4>\n\n\n\n<p>We\u2019ve established that the work you do is not about quantity or saving a couple of dollars, but about <strong>quality<\/strong>. Now you have to convey that to your client.&nbsp;<\/p>\n\n\n\n<p>Showcase your biggest, best projects and help your client connect all that experience on <a href=\"https:\/\/www.freelancermap.com\/blog\/resume-experience-cv\/\">your CV<\/a> with something real. It\u2019s also important that you be professional and always stick to your deadlines. Being hung out to dry is the biggest fear that clients have. <strong>Earn their trust<\/strong> by showing them this isn\u2019t a risk they\u2019ll have to take when working with you.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>2. Pick the right clients<\/strong><\/h4>\n\n\n\n<p>Quality should be your motto. Some clients, however, won\u2019t be interested in that. You can try to convince them, but don\u2019t beat yourself up about it if they don\u2019t go along. Some clients are just looking for someone to do a lot of grunt work for a low rate. Make it clear to them that you\u2019re not that someone.<\/p>\n\n\n\n<p>Also, always remember that the <strong>best clients are <a href=\"https:\/\/www.freelancermap.com\/blog\/strong-relationships-with-clients\/\">former clients<\/a><\/strong><a href=\"https:\/\/www.freelancermap.com\/blog\/strong-relationships-with-clients\/\">.<\/a> They know your rates, they know how you work and if you\u2019re talking about price, they want to work with you again.&nbsp;<\/p>\n\n\n\n<p>Other clients that tend to go for quality over quantity are <strong>the ones that have worked with freelancers in the past<\/strong>. They\u2019ve probably experienced the good and the bad \u2013 it\u2019s just about convincing them you\u2019re not part of the latter.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>3. Have a minimum rate<\/strong><\/h4>\n\n\n\n<p><a href=\"https:\/\/www.freelancermap.com\/blog\/freelancer-tips-how-to-set-your-rates-as-a-freelancer\/\"><strong>Setting a minimum rate<\/strong><\/a> is an indispensable strategy when you find yourself being undercut by your competition. It sets a line that you\u2019re not willing to cross. A good way to find that magic number is to take the top 60 percent of your projects by pay and not go under their average amount. Keep in mind that this number is there as much for the client as it is for you.<\/p>\n\n\n\n<p>It can be easy to fall into the trap of saying \u2013 \u201cokay, maybe if I cut my rate by 10% just this once\u201d. But, more often than not, it won\u2019t be just once \u2013 maybe you\u2019ll work with that client again, maybe somebody will find out how much they paid you and will request the same discount. Calculate a minimum rate and stick with it. Don\u2019t forget to repeat the process about once a year, your minimum should ideally go up in that period.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>4. Don\u2019t be afraid to say no<\/strong><\/h4>\n\n\n\n<p>Finally, learn when to <a href=\"https:\/\/www.freelancermap.com\/blog\/turn-down-freelance-work\/\"><strong>say no<\/strong><\/a>. If a client isn\u2019t willing to pay what you\u2019re worth, walk away. If it\u2019s a negotiating tactic and they still want to work with you, great. If not, then you\u2019re saved from having to deal with clients who value quantity over quality.&nbsp;&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>5. Build a strong personal brand<\/strong><\/h4>\n\n\n\n<p>A <strong><a href=\"https:\/\/www.freelancermap.com\/blog\/personal-brand-freelance-online-presence\/\">strong personal brand<\/a><\/strong> helps you stand out from your competitors and draws in clients who value your skills and are willing to pay premium rates. Remember, clients often choose freelancers based on their <strong>reputation and online presence<\/strong>.&nbsp;<\/p>\n\n\n\n<p>And so, beyond <strong><a href=\"https:\/\/www.freelancermap.com\/blog\/professional-portfolio-freelance\/\">showcasing a polished portfolio<\/a><\/strong>, you need to actively engage on platforms like LinkedIn, host webinars, write blog posts, or share industry insights on social media.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>6. Have an up-to-date online presence<\/strong><\/h4>\n\n\n\n<p>As stated above, clients often prefer freelancers who have an <strong>established online presence and reputation<\/strong>. Your online visibility reflects your abilities and so keeping them up-to-date ensures that clients see your latest work and establishments and lets them know that you\u2019re active and relevant.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>7. Leverage testimonials<\/strong><\/h4>\n\n\n\n<p><a href=\"https:\/\/www.freelancermap.com\/blog\/client-testimonials-recommendations-for-freelancers\/\">Testimonials<\/a> allow you to show potential clients that you\u2019re reliable and trustworthy. Utilising them can significantly strengthen your negotiation position and help you stand out from other freelancers. Make it a point to <strong>highlight impactful references and showcase your expertise<\/strong>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"conclusion\">Conclusion<\/h2>\n\n\n\n<p>In conculsion, <strong>setting up rates<\/strong> and deciding <strong>how to price a project for a client<\/strong> is a complex decision. It\u2019s important you understand the client\u2019s needs and the pros and cons of the different <strong>pricing options<\/strong>.<\/p>\n\n\n\n<p>Once you understand the project, you will be able to choose the best pricing method. And this doesn\u2019t have to be the same choice for every engagement.&nbsp;<\/p>\n\n\n\n<p>Even with the same client, you might want to use a different methodology for a different kind of project. So, select the <strong>pricing strategy that works best for each particular project<\/strong>.<\/p>\n\n\n\n<p>One last thing you shouldn\u2019t forget \u2013 <strong>rates change<\/strong>, just like people do. Don\u2019t forget to reassess what you are worth now and then and check in on the market developments regularly.&nbsp;<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><strong>42% of freelancers calculate their rates for each new project<\/strong>.<\/p>\n<cite>freelancermap&#8217;s Freelancer Study 2024<\/cite><\/blockquote>\n\n\n\n<p>With time you will get better at understanding how you work (hours needed) and pricing new projects. Practice does, indeed, make perfect!<\/p>\n\n\n\n<p><strong>You might also enjoy reading:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/www.freelancermap.com\/blog\/how-to-package-your-freelance-services-in-4-simple-steps\/\">How to package your freelance services<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/www.freelancermap.com\/blog\/writing-an-invoice-for-freelancers-tips-tricks-templates\/\">How to write a freelancer invoice &#8211; Tips and Template<\/a><\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/www.freelancermap.com\/registration?ref=blog-com-calculate-rate\"><img decoding=\"async\" width=\"1024\" height=\"297\" data-src=\"https:\/\/www.freelancermap.com\/blog\/wp-content\/uploads\/2024\/07\/cta-blog-freelancermap-sign-up.png\" alt=\"Looking for freelance projects? Register for free on freelancermap and land new clients a 0% commission fees\" class=\"wp-image-42927 lazyload\" data-srcset=\"https:\/\/www.freelancermap.com\/blog\/wp-content\/uploads\/2024\/07\/cta-blog-freelancermap-sign-up.png 1024w, https:\/\/www.freelancermap.com\/blog\/wp-content\/uploads\/2024\/07\/cta-blog-freelancermap-sign-up-300x87.png 300w, https:\/\/www.freelancermap.com\/blog\/wp-content\/uploads\/2024\/07\/cta-blog-freelancermap-sign-up-768x223.png 768w, https:\/\/www.freelancermap.com\/blog\/wp-content\/uploads\/2024\/07\/cta-blog-freelancermap-sign-up-720x209.png 720w, https:\/\/www.freelancermap.com\/blog\/wp-content\/uploads\/2024\/07\/cta-blog-freelancermap-sign-up-580x168.png 580w, https:\/\/www.freelancermap.com\/blog\/wp-content\/uploads\/2024\/07\/cta-blog-freelancermap-sign-up-320x93.png 320w\" data-sizes=\"(max-width: 1024px) 100vw, 1024px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1024px; --smush-placeholder-aspect-ratio: 1024\/297;\" \/><\/a><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>All freelancers have one challenge in common: setting a reasonable hourly rate. Beginners in particular often have a hard time deciding their hourly rate. Read on to avoid making rookie mistakes when it comes to setting your freelance rates!<\/p>\n","protected":false},"author":1,"featured_media":46999,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_kad_blocks_custom_css":"","_kad_blocks_head_custom_js":"","_kad_blocks_body_custom_js":"","_kad_blocks_footer_custom_js":"","footnotes":""},"categories":[3000],"tags":[3479,3628],"class_list":["post-3615","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance","tag-payments-invoicing","tag-pricing-rates"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Freelance Rates &amp; Pricing: How Much Should You Charge?<\/title>\n<meta name=\"description\" content=\"Hourly rates in design, development, 4+ industries \u2714 Calculation example \u2714 Pricing options \u2714 Calculate your freelance rate &amp; get started! 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