FreelancingBRANDIVOZ STORY

How to Set Your Freelance Rates and Get Paid What You’re Worth

Almost every freelancer I know underpriced themselves badly when they started. I certainly did. Figuring out how to set freelance rates confidently takes time, and honestly, a fair bit of trial and…

computertipsguru@gmail.comAugust 24, 20264 min read

Structured listFAQ included

Almost every freelancer I know underpriced themselves badly when they started. I certainly did. Figuring out how to set freelance rates confidently takes time, and honestly, a fair bit of trial and error — but there’s a clearer process than just guessing a number that feels reasonable.

Why Underpricing Hurts More Than It Helps

Quick answer: Underpricing as a freelancer doesn’t just reduce your income — it attracts clients who don’t value your work properly, and it’s genuinely difficult to raise rates significantly with existing clients later, so starting too low creates a lasting problem.

I’ve watched freelancers stuck at the same rate for years simply because they never built the confidence to raise it after underselling themselves initially.

Calculating Your Baseline Rate

Start with your desired annual income, then work backward accounting for non-billable time — admin work, marketing, sick days, holidays. Freelancers who calculate how to set freelance rates based purely on “what feels fair” often forget that not every hour is billable.

Estimate your target annual income
Subtract for non-billable hours (often 20-30% of total working time)
Divide by realistic billable hours per year to get your baseline hourly rate

Hourly vs Project-Based vs Retainer Pricing

Quick answer: Project-based and retainer pricing generally reward efficiency and experience better than pure hourly billing, since hourly rates can actually penalize you for becoming faster and more skilled over time.

Hourly: simplest to calculate, but experience can work against you as you speed up
Project-based: pricing based on value delivered, rewards efficiency and expertise
Retainer: predictable recurring income, good for ongoing client relationships

Researching Market Rates Without Undervaluing Yourself

Look at what experienced freelancers in your specific niche and region charge, but don’t anchor entirely to the lowest rates you find — those often come from freelancers competing purely on price, not value or quality.

[link to related guide on best websites to find freelance clients here]

Factoring in Your Actual Experience and Results

Picture two freelance writers with the same years of experience — one just produces content, the other has case studies showing measurable traffic and conversion improvements for past clients. The second one can reasonably charge significantly more, because they’re selling outcomes, not just output.

Raising Rates With Existing Clients

This feels uncomfortable, but it’s necessary periodically. Give clients advance notice, explain the increase professionally, and be prepared that some clients may leave — that’s usually fine, since it makes room for better-paying work anyway.

Give at least 30 days’ notice before a rate increase
Frame the increase around added value or experience, not just cost of living
Don’t apologize excessively — confident, brief communication works better

Common Freelance Pricing Mistakes

Pricing based purely on what feels comfortable rather than actual costs and goals
Never adjusting rates despite gaining significant experience over time
Undercutting rates to win a client, then struggling to raise them later
Not accounting for non-billable time when calculating hourly rates

Frequently Asked Questions

How do I know what to charge as a new freelancer? Research market rates in your niche and region, calculate your baseline rate based on desired income and billable hours, then adjust based on your specific experience level.

Is hourly or project-based pricing better for freelancers? Project-based pricing often rewards efficiency and expertise better, since hourly billing can actually penalize you as you become faster at your work.

How often should freelancers raise their rates? Many experienced freelancers review and adjust rates annually, or whenever their skill level and results clearly justify an increase.

Will I lose clients if I raise my freelance rates? Possibly some, but this is generally normal and often makes room for better-paying clients who value your work appropriately.

How do I calculate my freelance hourly rate accurately? Start with your desired annual income, subtract for non-billable time like admin and marketing, then divide by realistic billable hours per year.

Should I ever lower my rates to win a client? Generally not recommended as a regular strategy — it sets a difficult precedent and can attract clients who don’t value your work properly long-term.

Conclusion

Learning how to set freelance rates confidently is as much about mindset as math — recognizing your actual value and being willing to charge accordingly, even when it feels uncomfortable at first. Calculate your baseline honestly, research your market, and don’t be afraid to raise rates as your experience grows. Underpricing yourself now costs far more over your career than the short-term discomfort of asking for what you’re worth.

Suggested alt text: “Freelancer calculating rates and reviewing invoices on a laptop”