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How to Set Your Freelance Rate as a Beginner

2026-09-25

Setting your freelance rate for the first time is intimidating. Charge too little, and you burn out working long hours for barely enough income. Charge too much, and you might scare off potential clients before you've built a portfolio.

Start with your income goal

Before thinking about hourly rates, figure out how much you actually need to earn in a year. This includes not just your living expenses, but savings, taxes, and business costs like software or equipment.

Account for unbillable time

Most new freelancers make the mistake of dividing their income goal by all their working hours. But a large chunk of your time goes to tasks you can't bill for: sending proposals, invoicing, marketing yourself, and admin work. Most freelancers only bill 60-80% of their working hours.

Use a calculator to skip the guesswork

Rather than estimating by hand, plug your numbers into our Freelance Rate Calculator to get a rate based on your actual income goal, billable hours, expenses, and tax buffer.