Many freelancers set their price by guessing what clients will accept. That usually leads to underpricing, long hours and burnout. A better approach starts with your costs and the value you deliver.

Step 1: Work out your minimum rate

  1. Decide the monthly income you need, including tax, savings, equipment, software and insurance.
  2. Estimate billable hours realistically. Admin, sales and learning take time — many freelancers bill only 50–70% of their working hours.
  3. Divide: minimum hourly rate = monthly income needed ÷ billable hours per month.

This is your floor, not your target. Experience, specialist skills and the value of the result should push your price above it.

Step 2: Choose a pricing model

Hourly

  • Good for: unclear scope, ongoing changes, maintenance.
  • Watch out: clients may focus on hours rather than results; track time carefully.

Fixed price

  • Good for: well-defined deliverables such as a landing page or a specific feature.
  • Watch out: write the scope precisely and add a buffer for unknowns.

Monthly retainer

  • Good for: ongoing support, for example "3 hours of support every working day" or a fixed number of hours per month.
  • Benefit: predictable income for you and guaranteed availability for the client.

Step 3: Write a clear quote

A good quote includes:

  • What is included — and what is not
  • Deliverables and milestones
  • Timeline and the client's responsibilities (content, access, feedback)
  • Number of revision rounds
  • Payment terms, for example an advance and milestone payments

Step 4: Handle scope changes

New requests are normal. Respond with: "Happy to add that. It is outside the current scope; it will take about X hours and cost Y. Shall I add it?" Agreeing to everything for free is the fastest way to lose money on a project.

Step 5: Raise your rates over time

Review your pricing every six to twelve months. Raise rates for new clients first, and give existing clients notice before changing theirs.

Key takeaways

Know your minimum rate, pick the pricing model that fits the work, put the scope in writing, charge for changes, and review your prices regularly.