Determine the right hourly rate that covers your expenses, pays you fairly, and leaves room for profit and growth.
Realistic billable hours (not total work hours)
Recommended Hourly Rate
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Many freelancers undercharge because they only consider their desired salary. Your hourly rate must also cover business expenses (software, insurance, equipment), taxes, unpaid time (admin, marketing, vacation), and a profit margin for growth. Using 48 working weeks (accounting for vacation and sick time) and realistic billable hours gives a more accurate rate.
Most freelancers underestimate their true costs. Remember: you are covering taxes (25-35%), health insurance, retirement, equipment, software, time spent on non-billable tasks (marketing, admin, sales), and vacation time.