How to Set Your Freelance Rates: A Practical Guide
Setting your freelance rates can be one of the toughest parts of working independently—especially if you’re just starting out or entering a new market. Should you charge hourly? Per project? By deliverable? And how do you know if your pricing is fair?
This guide will help you calculate sustainable rates that reflect your experience, protect your time, and showcase the value you bring to your clients.
Why Getting Your Rates Right Matters
Pricing too low can lead to burnout and financial instability. Pricing too high—without clarity or strategy—can push away potential clients. When you understand how to charge confidently, you gain the freedom to choose better projects, sustain your business long-term, and avoid underpricing yourself.
What to Consider When Calculating Your Rates
Before you pick a number, factor in:
- Your business and personal expenses: Include software, internet, health insurance, taxes, rent, subscriptions—everything it takes to live and work.
- Your skills and experience: The more value and specialization you offer, the more you can charge.
- Client type and market: A startup in Silicon Valley can usually pay more than a small local business.
- Time required to deliver: Don’t charge by the hour if you’re delivering high-value work in less time.
- Taxes and fees: Consider costs from international payments, payment platforms, or banking fees.
Useful Pricing Formulas
Start here to get a baseline:
Minimum hourly rate
→ (Monthly expenses + Desired savings) ÷ Billable hours per month
Project rate
→ Hourly rate × Estimated hours × Value multiplier (1.2 to 1.5)
📌 Tip: If possible, quote per project. It gives clients cost clarity and positions your work based on results, not time.
How to Justify Your Rates to Clients
To confidently stand behind your pricing:
- Highlight your experience, portfolio, and success stories
- Emphasize the impact of your work, not just hours logged
- Present quotes clearly and professionally, with well-defined scope
Hourly vs. Project-Based Pricing
Hourly:
Best for flexible projects or ongoing retainers. However, it can limit how much you earn over time.
Per project:
Ideal for fixed-scope work. Offers better planning for both you and the client and often leads to higher perceived value.
Pro Tip: Many freelancers use a mix of both, depending on the type of work or client.
Final Thoughts: Pricing Is Power
Pricing your services is more than just covering costs—it’s about being able to live well doing what you love. Be strategic, track your numbers, and don’t be afraid to raise your rates as you grow. No one else will do it for you.
At Inter , we’re building tools for freelancers working globally—helping you manage income in multiple currencies, invest smartly, and operate with confidence from anywhere.
