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Courses › Freelancing Basics › 2 of 6

Lesson 2: Set a price that pays

Most new freelancers underprice because they forget unpaid hours, expenses and taxes.

Work back from what you need

Start with the income you want, add business expenses, then allow for taxes. Divide by the hours you can realistically bill, which is usually far fewer than you work.

Price per project where you can

Clients compare totals. A project price rewards you for getting faster and avoids debates about hours; keep an hourly rate for extras and changes.

Raise prices on a schedule

Plan a review every six months or when you're fully booked. New clients get the new price; give existing clients notice.

Do this today

Run your numbers through the freelance rate calculator and write your minimum hourly rate.

Freelance hourly rate calculator