Well, setting your freelance rates is awkward AF. It’s kinda like when someone asks you on a date, “So what are we?” but instead of relationship labels, it’s money. You don’t want to undersell yourself, but you also don’t wanna scare people away by asking for Beyoncé-level pay when you’re still figuring things out. And ngl, it’s confusing because everyone seems to be charging different amounts for the same kind of work.
If you’re trying to figure out how much to charge as a freelancer — whether you’re designing logos, writing copy, editing TikToks, or even consulting — this is your guide. We’ll talk numbers, strategy, mindset, and yes, the awkward “Money & Work” conversation you have to get good at if you wanna survive in freelance life. Grab your iced coffee (or whatever you’re sipping on), and let’s dive in.
Why Freelance Rates Are So Confusing
Freelancing doesn’t come with a HR department that sets your salary. You’re literally the boss, the employee, and the finance team — all rolled into one. Which sounds cool until you realize you now have to answer:
- “How much am I worth?”
- “What’s the market rate?”
- “Do I charge by the hour, project, or retainer?”
- “What if they ghost me when I tell them my price?”
And, ugh, let’s not forget the classic internal struggle: “Am I even good enough to charge that much?” (Spoiler: you probably are.)
Here’s the thing: there’s no one-size-fits-all rate. A freelance photographer in New York is not gonna charge the same as a social media manager in a small town. Experience, location, industry, and even how you brand yourself play a role.
But that’s also the beauty of freelancing. You get to choose. And with the right mindset (and a lil strategy), you can set rates that actually pay your bills without you eating instant noodles for the rest of eternity.
Hourly vs Project-Based vs Retainer
Okay, so first thing’s first: how are you actually charging?
Hourly
This is the simplest — you track your time and bill by the hour. Good for beginners or tasks where the time is unpredictable. Downside? You’re capped. You only make money when you’re working, and if you get faster (because you’re better), you ironically make less. Like… what?
Project-Based
Here you charge per deliverable. $500 for a website, $200 for a blog post, $1,000 for a video edit. Clients like this because it feels straightforward, and you like it because if you work fast, your “hourly” ends up higher. Win-win.
Retainer
This is where you’ve made it, baby. Clients pay you a fixed monthly fee for a set amount of work. Super stable, less stress, and kinda like freelancing’s version of a steady relationship. But you usually need to build trust first before landing these.
The Math Behind Your Rate (Don’t Panic)
I know math is scary (same), but let’s keep it simple. To set a baseline rate, figure out three things:
- Your monthly expenses – rent, food, subscriptions, gas, dog food, all that.
- How much you wanna make extra – savings, travel, debt payoff, future goals.
- How many hours you can realistically work – not 40. Be honest. Freelancers spend a ton of time marketing, emailing, and crying over invoices, so only like 50-60% of your “work” hours are actually billable.
So if your expenses + goals = $3,000/month, and you can bill around 80 hours, your hourly baseline is about $37.50. Round up to $40, because you deserve it.
That’s your starting point. From there, you adjust based on demand, skill level, and market rates.
The Confidence Problem (aka Asking Without Apologizing)
Setting rates isn’t just math. It’s mindset. A lot of us — especially if you’re new, or you’re not used to talking about money — end up lowballing ourselves. You might say stuff like:
- “I usually charge $200, but I can do it for $150 if that’s too much…”
- “I don’t know if this is okay, but my rate is…”
Stop. Breathe. Repeat after me: Your work has value. You don’t need to apologize for charging fairly.
Clients expect to pay for quality. The ones who don’t? Probably not the type of clients you want long-term. And honestly, every time I raised my rates, I ended up attracting better clients who respected my time. Funny how that works, right?
Factors That Influence Freelance Rates
Okay, let’s break down some stuff that affects what you should charge.
Experience
More years = more money. Even if you’ve only been freelancing for a year, think about other experience (school, internships, jobs).
Niche
A logo for a small Etsy shop? Maybe $200. A logo for a fintech startup with millions in funding? Try $2,000+. Same work, different market.
Location
If you’re living in San Francisco, your cost of living (and therefore your rate) will be higher than someone living in, say, Bali. But since freelancing is global now, you can also price based on where your clients are.
Client Budget
Sometimes clients legit don’t have money. Sometimes they say they don’t have money but somehow just bought a Tesla. Learn to spot the difference.
Deliverables
Don’t just charge for the time spent creating. Charge for revisions, meetings, research, even the mental load of holding all that info in your brain.
The “Money & Work” Conversation
This is where it gets awkward, but you gotta be direct. Don’t just say, “I’ll do whatever you want, just pay me something.” Instead, try:
- “Based on what you’re asking, my project fee is $X.”
- “I charge $X/hour, with a minimum of Y hours.”
- “I offer monthly retainers starting at $X, which includes A, B, and C.”
Notice how none of those end with “…but I can lower it if needed”? Yeah, confidence is key.
Also, put everything in writing. Contracts protect both sides. Verbal agreements are cute until someone ghosts you.
Common Mistakes Freelancers Make with Rates
- Not raising rates – Inflation is real. Your Netflix subscription went up, your rate should too.
- Not charging for revisions – Endless edits = burnout. Always define what’s included.
- Taking every client – If someone haggles too much, it’s a red flag. Walk away.
- Comparing too much – Just because someone on Twitter charges $500/hour doesn’t mean you need to. Focus on your own lane.
How to Actually Raise Your Rates
It’s scary, but here’s how you do it without losing everyone.
- Start with new clients. Quote higher. See what happens.
- For existing clients, give notice. Like, “Starting next month, my rate will be X to better reflect the value of my work.”
- Bundle more value. Instead of just charging more, add small perks (faster delivery, strategy calls, etc.).
Clients usually understand. And if they don’t? Again, maybe not your people.
Mindset Shifts You Need
- You’re not just selling time. You’re selling expertise, creativity, and results.
- You don’t owe “mates rates” to random acquaintances.
- Money & Work conversations don’t have to feel gross — they’re part of doing business.
- You’re allowed to want more than “just enough.”
Random Tips That Helped Me
- Track your time, even if you’re not billing hourly. It’ll help you see if a project is worth it.
- Add 20-30% more to whatever number you first think of. You’re probably undervaluing yourself.
- Say your rate, then shut up. Don’t fill the silence with excuses.
- Build a portfolio that screams value. The better you look on paper (or online), the easier it is to justify your price.
- Network with other freelancers. We spill tea on what people are paying, and it’s super helpful.
The Big Picture
Freelance rates are part math, part psychology, part trial-and-error. You’re gonna mess it up sometimes (we all do). You’ll undercharge, overpromise, maybe even work for exposure once or twice (we don’t talk about that era). But with time, you’ll find your sweet spot.
Remember: freelancing isn’t just about surviving. It’s about building a life where you control your Money & Work, where you’re not chained to some desk 9–5, and where you actually get paid what you’re worth.
So set your rates with confidence. Adjust as you go. And never, ever be afraid to ask for what you deserve.
Final Takeaway
At the end of the day, your freelance rate is not just a number — it’s a reflection of your skills, your boundaries, and your goals. Don’t let fear, comparison, or client pressure drag it down. You deserve to thrive, not just scrape by.
So, go on. Open that notes app, run the numbers, and set a rate that feels right (and maybe a little scary, in a good way). You got this.
And hey — next time someone asks, “What’s your rate?” you’ll be ready to say it with your chest.
Now go get that bag. ✨
