How to Set Your Freelance Rate
Setting the right freelance rate requires accounting for several factors that salaried employees don't need to worry about: self-employment taxes, business expenses, health insurance, unpaid time off, and a profit margin for growth.
Key Factors
- Desired income: What you want to earn after all expenses and taxes
- Business expenses: Software, equipment, coworking, accounting, etc.
- Tax rate: Self-employed individuals typically pay higher taxes
- Billable hours: You won't bill for every hour — admin, marketing, and learning take time
- Profit margin: Buffer for savings, investments, and business growth