Ultimate Guide to Freelancing - Part 5: Determining Your Rate

Mar 25

Determining your Rate

This one is important and I have a handy shortcut (Thanks to Katie of Via Collective!)
Simply put: concretely determine your rate by adding your annual living expenses (rent, bills, food, travel, software, subscriptions, clothing, movies, savings, etc.) and dividing this by the hours you wish to work that year
For example, initially in your career you may find your expenses add to $40,000/year and you wish to work 1,920 hours. (5, 8 hour days per week with 3 weeks off per year)
Estimate how many hours per week will be spent on unpaid marketing & admin tasks & looking for work (Perhaps 12 hours per week)
Include an estimated 33% you’ll need to pay in taxes
Fill out my “Determining Your Rate” Google Sheet with these numbers and it will do all the math for you! Download it here:

Compare this rate to the going rate for similarly skilled workers in your area and adjust
The important thing is that you feel confident about your rate. You know factually that your rate is what is required to do business in your area for the service you’re selling. And you can’t lower your price too far to compete with a cheaper competitor
You can, however, adjust up or down slightly if the job is desirable (or not desirable) or you have availability in your schedule
Phew, apologies, lots of math in this one, but it’s important! The template really does all the work for you. Check it out!

Channing Ritter (Freelance Advisor)

Brendan Bergen (Copywriter & Social Media Advisor)

Hana Sato (Creative Recruiting Advisor)

Aliza Adam (Freelance Advisor)

Selwyn Rocha (Graphic Design Advisor)

Anna Lu (Professional Feedback)

Tero Honkala (Marketing & Creative Media Feedback)

Chrissy Raftery (Professional Feedback)

Paul Benson