If you’re just starting your freelance career, chances are you’ve already spent too long wondering how you should set your freelance rates (jump straight to our calculator).
It’s one of the first big hurdles for any freelancer. Set your freelance rate too low and you risk burnout and underpayment. Set your rates too high and you worry you’ll scare off new clients. But here’s the truth: most of us are just guessing when we start out, and guessing rarely leads to confident pricing.
That’s why we’ve created a simple freelance rate calculator you can use right here in this blog. No spreadsheet faff. No complicated maths. Just a clear idea of how to price your freelance services with purpose.
Your rate as a freelancer isn’t just about getting paid. It’s a reflection of your skills, confidence, and the value you offer. When you set your freelance rates intentionally, you’re building the foundation for a business that’s profitable and sustainable.
Too many new freelancers undercharge because they want to get hired fast or don’t feel “experienced enough” to ask for more. But the right clients aren’t just looking for the cheapest option. They want someone who understands their worth and communicates it through how they price.
So let’s stop guessing. Let’s calculate your freelance rates.
We built this tool to help you figure out your minimum viable hourly rate. Calculate the base rate you need to charge to meet your income goals, cover your business expenses, and allow for things like tax, holidays and non-billable hours.
👇 Try the calculator now. Fill in your numbers and get your rate instantly.
(If you’re reading this in the email or a reader, head to the full blog post to use it.)
Work out your ideal hourly rate based on your income goals, expenses, and availability.
Once you’ve got that number, you’ve got a baseline. That makes everything easier.
There’s no single ‘right’ way to price your freelance services. Some freelancers use hourly rates, some work on project fees, and others use value-based pricing depending on the client.
Here’s a quick run-through of the most common pricing strategies:
Hourly rate
Great for flexible work, but can limit your income if you’re fast and efficient. Clients may also focus too much on the number of hours rather than the quality of your work. If you do work this way, track your time.
Day rate
Ideal for short-term contracts or ongoing freelance gigs. You’ll usually agree in advance how many days a project will take, which gives some predictability for both sides.
Project rate
This can be more profitable if you scope clearly and manage time well. Project rates are also attractive to clients who want to know the full cost up front.
Value-based pricing
This is where you price your freelance services based on the value you create, not the time it takes. If your work helps a client make or save thousands, your price reflects that outcome.
One of the biggest mistakes freelancers make is assuming they’ll be billing 40 hours a week. In reality, you’ll spend a big chunk of your time on admin, marketing, proposals, unpaid calls and unpaid scrolls through Upwork.
According to research by Bonsai, freelancers spend only 47% of their week on billable work. That means if you want to work 40 hours, you’ll likely only bill around 20 of those.
Our calculator takes this into account. So when you plug in your desired annual income and working weeks, it helps you calculate what you really need to charge per billable hour to hit your goals.
It’s useful to know what other freelancers are charging in your niche. You can:
But remember, your freelance rate needs to reflect your experience, costs and goals, not someone else’s.
Your rate is personal. Use outside info as a benchmark, not a blueprint.
Once you’ve got a few clients under your belt, it’s a good idea to review your rates regularly. If you’re consistently booked out, getting great feedback, or delivering more value than when you started, it’s time to raise your rates.
Here are some signs you’re ready:
Need help explaining a rate rise to current clients? We’ll cover that in a future blog.
Use our freelance rate calculator right here in the blog to take the guesswork out of pricing. Pop in your numbers and get an instant hourly rate that actually works for your goals.
Then, if you want to track your time more accurately, we recommend Full Scope. It’s a super helpful tool for logging billable hours and seeing how long tasks really take (spoiler alert: it’s almost always longer than you think).
Freelance pricing can feel like a minefield at the start. But it doesn’t have to be. When you set your freelance rates based on what you need, not what you guess, you build a foundation that supports your income, confidence, and business growth.
Try the calculator above, have a play with different scenarios, and see how your rate changes depending on hours, expenses or income goals. It’s empowering stuff, promise.
And if you’re still figuring out your freelance foundations, check out the Creative Little World Starter Kit for more tools and tips.
