Setting My Freelance Rate
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Works out a defensible day rate from your costs, target income, and realistic billable days.
Tags: Freelance, Finance, Business
Prompt template
I need help setting my rate, and I want the arithmetic done properly rather than a vibe-based number. Here is my situation. I do [text: what you do, e.g. brand identity design] and I currently charge [text: current rate and unit, e.g. 450 a day]. I have been freelancing for [dropdown: under a year, 1-3 years, 3-7 years, over 7 years]. I work in [text: country or city] and my clients are mostly [dropdown: startups, agencies, mid-size companies, enterprise, individuals]. My money: I want to take home [text: target annual income after tax] a year. My fixed business costs are roughly [text: annual total for software, insurance, accountant, workspace]. Assume [text: number] weeks a year of holiday and sick leave, and assume only some of my working days are billable ones. Things that complicate it: [multi: I do a lot of unpaid pitching, Clients pay late, I have a couple of retainers, My work is seasonal, I am trying to move upmarket, I subcontract some work out] Walk me from target take-home to a day rate, showing each step so I can argue with your assumptions. Then give me three numbers: the rate I quote by default, the floor I do not go below, and a stretch rate for work I would be slightly nervous taking on. If my current rate sits outside any of those, say by how much. Separately, give me two sentences I can say when a client pushes back on the new number. One for a client I want to keep, one for a client I would not mind losing.