Freelance Rate Calculator - How Much to Charge Hourly
Determining your hourly rate to sell your skills is a loaded question. Many freelancers often under charge or don't account for business development, marketing, software or even paid time off. Use our freelance rate calculator to determine the right hourly rate to charge your clients to meet your annual income goals.
HOW THE CALCULATOR WORKS
Step 1: Input Your Desired Annual Salary from Freelancing
First, input your desired gross income from freelancing that you want to target. This will help flow down to the desired input.
Step 2: Input Sales, Travel and Marketing Expenses
Secondly, you need to input your annual sales and marketing expenses. These types of expenses are the cost of growing your business, which may include travel, industry conferences, Facebook advertising and more.
Step 3: Input Software / License Expenses
You should have business expenses associated with doing your work. You need to use the most up-to-date software to perform your job at the highest level.
An example of software a freelance might use is Quickbooks to handle their back-office accounting. Or, another example is the actual execution service. For instance, you provide SEO services and you need a platform like SEMRush to do keyword research for clients.
Step 4: Determine Your Platform Fees (% Based)
If you use a platform for freelancing, you will likely have a portion of your pay eaten up as a service fee. Some platforms charge 20% of your hourly rate or a fixed fee. Use this as an estimate throughout the year.
Step 5: Business Development (% Based)
How much of your time will be non-billable throughout the year? This non-billable time is crucial to landing more clients. You'll usually spend hours before you win over a client, which would include explaining why you are the best freelancer in the world. Estimate the percentage time you will spend throughout the year on these types of conversations.
Step 6: Input Your Paid Time Off
Yes, even freelancers need paid time off. Input the actual number of days that you will take off throughout the year. The best part about being a freelancer is that you can work when you want and where you want.