How to Price Your Freelance Services: A Step-by-Step Formula
Pricing freelance services can feel like walking a tightrope—go too high and scare off clients, go too low and burn out. This guide will walk you through a simple, smart formula to price your services like a pro.
Step 1: Calculate Your Monthly Expenses
Include rent, internet, software, insurance, subscriptions, taxes, etc. Let’s say you need $3,000/month to cover business and personal expenses.
Step 2: Add Desired Profit
Decide how much profit you want to earn beyond just covering costs. Let’s say $2,000/month. Your target is now $5,000/month.
Step 3: Determine Your Billable Hours
Out of 160 monthly working hours, assume 50% is billable (rest is admin, sales, learning, etc.). So, 80 billable hours.
Step 4: Do the Math
$5,000 (target) ÷ 80 (billable hours) = $62.50/hour. That’s your baseline hourly rate.
Step 5: Adjust for Market Value & Experience
Research what others in your niche charge. If you’re a specialist or highly experienced, increase accordingly.
Step 6: Offer Package Pricing
Clients love predictable pricing. Turn your hourly rate into flat-fee packages.
- Website Design – $2,000 (est. 30 hours)
- Blog Writing – $500 for 4 posts (est. 8 hours)
- Social Media Kit – $800 (est. 12 hours)
Bonus: Build a Pricing Sheet
Having a downloadable pricing sheet or PDF builds trust and makes you look more professional.
Common Mistakes to Avoid:
- Underestimating time
- Not accounting for revisions
- Ignoring taxes or hidden fees
- Copying others blindly
Final Tip:
Revisit your rates every 6–12 months. As your skills, demand, and workload evolve—so should your pricing.
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👉 Share how you set your rates in the comments!
