Stop Guessing: How to Calculate Your Freelance Rate (Spreadsheet Included)
Every freelancer struggles with pricing. I did too. Here's the method I use to set rates that actually cover costs and build profit.
Step 1: Know your target. Write down your desired annual pre-tax income.
Step 2: Add overhead. Rent, software, insurance, phone — all of it.
Step 3: Factor taxes. Self-employment tax eats 15-30% — account for it.
Step 4: Count working weeks. Subtract vacation, sick time, and downtime.
Step 5: Be realistic about billable hours. If you're billing 60% of desk time, that's great — use that number.
Once you run the math, you'll probably discover you're undercharging 30-50%. That's normal — and fixable.
I built a Google Sheets calculator that does all this for you. Enter 8 numbers — get your hourly, daily, weekly, monthly, and project rate. Includes market benchmarks and a confidence score.
Grab it here (not free, but the ROI is immediate): https://microtoolsb2b.gumroad.com/l/FreelanceRateCalculator
Share this with 3 freelancer friends who need to raise their rates.
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