How do I calculate my hourly rate as a freelancer?

How do I work out my hourly rate as a freelancer?

How to Calculate Your Freelance Hourly Rate

  1. Calculate your expenses.
  2. Make room for growth.
  3. $125,000 × 1.20 = $150,000.
  4. Determine your number of billable hours.
  5. Total working hours per year: 2,080.
  6. 1,800 hours × 0.75 = 1,350 billable hours per year.
  7. Establish your hourly rate.
  8. $150,000 ÷ 1,350 = $111 per hour.

How do you calculate freelance rate?

Determine Your Baseline Freelance Rate

Start by dividing your desired annual salary by 52 (for a start). That gives you the dollar amount you need to earn per week. Then, take that amount and divide it by 40. That gives you the hourly rate you need to charge clients.

What is freelancer hourly rate?

According to our last freelancer survey, the average freelancer rate among IT professionals in 2020 is $94.28/hour. While your own rate may differ, you can use this value as a basis for your own calculation.

How do I determine my hourly rate?

To determine your hourly wage, divide your annual salary by 2,080. If you make $75,000 a year, your hourly wage is $75,000/2080, or $36.06. If you work 37.5 hours a week, divide your annual salary by 1,950 (37.5 x 52).

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How do freelancers calculate day rates?

To get a rough idea of what your freelance day rate should be, put your current salary into this pay converter, and then double the number it gives you for “Daily”. Let’s take my old salary of £32,000 as an example. Assuming that I was working 8 hours a day, 5 days a week, this converts to £123 per day.

What is a hourly rate?

What is hourly pay? Hourly pay is pay that a person earns based on a set hourly rate. This rate is then multiplied by how many hours the person works in a pay period, usually one or two weeks at a time. For example, if you make $10 an hour and work 30 hours a week, you’d make $300 per week at your job.

How do I negotiate my hourly rate as a freelancer?

Freelancing: 7 Tips for Negotiating High End Rates

  1. Determine Your Minimum Acceptable Rate (MAR) Any freelancer should know where their bottom line is. …
  2. Charge Per Project. …
  3. Negotiate Based On Their Perception of Value. …
  4. Get Them to Name a Price. …
  5. Start High. …
  6. Give Yourself Wiggle Room. …
  7. Seek a Mutually Agreeable Outcome.

What is a good hourly rate?

The average American earns $27.16 per hour

As you’d expect, hourly wages vary greatly from industry to industry, from a low of $16.02 an hour for leisure and hospitality industry to a high of $40.86 an hour for those in the utilities industry.

What’s a good freelance rate?

A fair freelance writer rate by the word: ranges between . 20 cents for newbies, and $1 for experienced writers. A fair freelance writer rate by the hour: ranges from $30 for beginners to over $100 an hour for experienced writers.

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Does freelancer really pay?

Among all 643 freelancers, only 62.5% were working full time. Yet they were making quite a lot of money. “The median income for all respondents is $10,001–$20,000. A little over 19 percent of respondents made more than $50,000 last year, including about five percent who earned six figures.”