Price freelance work for the hours clients do not see

A freelancer cannot normally bill every working hour. Marketing, proposals, invoicing, bookkeeping, training and downtime still need to be funded by the hours that are billable.

Start with required revenue

Add desired take-home income, a tax reserve, business expenses and the cost of replacing benefits. This produces a revenue requirement rather than simply converting an employee salary into an hourly number.

Estimate realistic capacity

Subtract vacation, holidays, illness and expected slow periods. Then estimate how many hours in a working week can actually be billed. A lower billable capacity requires a higher sustainable rate.

Translate the rate into a project quote

Estimate delivery hours and add time for communication, revisions and project risk. Clearly define scope so an apparently profitable fixed-price project does not expand without additional compensation.

Educational information only. Pricing, contracts and tax treatment vary.