How Much Should You Charge As a Freelancer?

Most freelancers pick their rate by copying a number they saw online, or by guessing what feels fair. Both approaches tend to leave money on the table, because neither one starts from what you actually need to earn.

The better approach works backward: start with the income you want, then figure out the rate that gets you there.

1. Start with your target income

Not your current income — the number you'd actually like to make this year, after covering software, taxes, and time off.

2. Count your realistic billable hours

This is the part almost everyone gets wrong. A full-time freelancer rarely bills 40 hours a week — admin, client calls, proposals, and slow weeks eat into that. Most freelancers land somewhere between 20-30 billable hours a week, not 40.

3. Add a buffer for overhead

Self-employment tax, software subscriptions, health insurance, and unpaid sick days all come out of your rate, not on top of it. A buffer of 25-35% is typical.

4. Do the math

Divide your target income by your total realistic billable hours for the year, then adjust up for your overhead buffer. That number is your baseline — the minimum you should charge to hit your goal.

A quick note on going higher

This calculation gives you a floor, not a ceiling. Once you know your baseline, you can charge more based on experience, demand, or specialization — but you should never knowingly charge less than this number, since it means working for less than your actual goal.