Guides / Earning more per hour
How to set your freelance rates
Cover costs, taxes and unpaid time, then check the market.
New freelancers often charge what they earned per hour at a job. That's usually too low, because a freelancer pays their own taxes and costs, and spends unpaid time finding clients and doing admin.
A simple method
- Decide what you want to take home per hour
- Add a share for taxes (self-employment tax plus income tax)
- Add your costs per hour: software, equipment, travel
- Add a margin for unpaid time; many freelancers bill only part of the hours they work
- Compare with what others charge locally for similar work
Other options
- Per-project prices, so you're not penalized for being fast
- Packages: a set service for a set price
- Minimum charges for small jobs
General educational information, not tax or legal advice. Earnings vary. Penny Boosters isn't paid by any gig app or platform.