But how do you set your project rates?

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With hourly payments, the client may not agree with how many hours you actually spent completing the job (or the rate you set).



3. Calculate how much to charge
A person's hand holding documents, with a smartphone and a pen on a table, surrounded by papers and a calculator.

Now, when it comes to pricing your project, you need to factor in how much time you’ll need. For example, if you’re a writer, you need to factor in the time it takes to brainstorm content ideas, research the topic, write the article, edit the article, find images, and revisions (most include up to 2 revisions in the rate).

Even if you aren’t charging an hourly rate, you want to armenia cell phone number database have what’s called an internal hourly rate. This means that you know how much you want to charge for the hours you work, but only you know that. You use this rate to calculate your project rate. For example, if your price is $50/hour and you estimate that a project will take 5 hours to complete, your project rate will be $250. This is the quote you offer your client.

This gets easier as you complete a lot of similar projects and get better at estimating how long they’ll take, so you don’t end up robbing yourself when you miscalculate.

When it comes to determining your hourly rate, you’ll want to look at what others in your industry are charging (from the research you gathered in step one). And then do some calculations based on your lifestyle.

You will need to earn enough to cover your monthly expenses, pension, taxes, and have enough money to save. For example, you will need to list your costs for:

Rent or mortgage
Health insurance
Car insurance
Notes on the car
Office rental/lease
Equipment and tools you use
Accounting (software or experts)
Annual or quarterly fees
Retirement
Taxes
Contractor's fees
Add up all the expenses you pay for the year. Then multiply your hourly rate by the number of hours you work per year to get your salary. If you don't make enough to pay all your bills. You'll need to raise your rates so you have a cushion you're happy with.

It’s also helpful to track how many hours you work each week to get a more accurate representation of your schedule. There are apps you can use to make it easier to calculate your productivity hours.

Some freelancers work the problem backwards: They set a yearly salary they’d like to earn and then divide that by the number of hours they work.

The difference will give you the hourly rate you should charge. In any case, make sure the price fits your lifestyle and is competitive.