How to Price Your Freelance Services

Pricing your freelance services isn’t just about picking a number. This guide walks you through how to calculate your baseline rate, understand your market, and price with confidence based on value, not just time.

FREELANCE GUIDE: GETTING STARTED

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Pricing is one of the most important and often most uncomfortable parts of freelancing. Charge too little and you risk burnout and resentment. Charge too much without backing it up and you risk losing the client. The goal is to price based on value while still covering your costs and building a sustainable business.

This guide breaks down how to find your baseline rate, what factors to consider, and how to shift from charging for time to charging for impact.

1. Know Your Minimum Rate

Before setting prices, calculate the lowest rate you can charge and still cover your needs. This is called your minimum acceptable rate (MAR). Here's how to find it:

  1. Add up your monthly expenses: rent or mortgage, food, insurance, subscriptions, taxes, etc.

  2. Factor in business costs: software, internet, gear, marketing.

  3. Add your desired monthly income or savings goal.

  4. Divide that number by how many hours you can realistically bill each month (not 160 – account for admin time, unpaid projects, and breaks).

This gives you a baseline. Even if you're new, don't price below this. It’s your floor, not your ceiling.

Useful tool: Freelance Rate Calculator by Bonsai

2. Understand the Market

Research what others in your niche are charging. Look at:

Compare experience levels, deliverables, and pricing models. Don’t copy rates blindly but use them to check if you’re wildly under or overcharging.

3. Use Tiered Pricing or Packages

Instead of hourly rates, consider project-based pricing with multiple tiers. For example:

  • Starter package: Basic deliverables with limited revisions

  • Standard package: Full scope with moderate revisions and support

  • Premium package: Full scope plus strategy, extended support, or faster delivery

Clients like options. Packages help them self-select based on budget while anchoring your value.

Tip: Avoid pricing by the hour when possible. It limits your earning potential and ties your value to time, not outcomes.

4. Factor in Value, Not Just Time

If your work has a measurable impact, pricing based on value makes more sense. A landing page that helps a client make $20,000 in sales should not cost $300.

Value-based pricing works best when:

  • You can show past results or ROI

  • The client is outcome-focused

  • You’re confident in your ability to deliver that value

Frame your rate as an investment, not a cost. Explain what your work helps them achieve, not just what it includes.

5. Adjust for the Type of Client

A solo founder, a funded startup, and a Fortune 500 all have different budgets. Your rate can shift depending on:

  • The size of the company

  • The urgency or complexity of the work

  • Whether the project will lead to more work

This isn’t about charging unfairly. It’s about recognizing when your value means more to the client and adjusting accordingly.

6. Raise Your Rates Over Time

If clients are accepting your rates with no hesitation, if you’re booked out, or if your skills have improved, it’s time to raise your prices.

Start by increasing rates with new clients. You don’t need to hike existing rates mid-project, but for ongoing clients, consider a professional heads-up: “As of [date], my standard rates will be updated to reflect my current demand and experience.”

Bonus read: How to Raise Your Freelance Rates Without Losing Clients

Final Thoughts

Pricing isn’t a one-time decision. It evolves with your skills, your demand, and your business goals. Start with the numbers, factor in your value, and stay open to revisiting your rates regularly. Confidence comes with practice – and with seeing your work create results.

If you’re unsure, start by raising your rate on your next new project. Then do it again. You don’t need to justify it to anyone but yourself.