This web-based tool takes a really thorough approach to determine an hourly rate that’s appropriate for your living expenses. First, you pinpoint your annual business costs, including how much you spend on everything from computers to paper clips. Next, you’ll calculate your personal costs like housing and daily expenses.
Step three helps you figure out how many hours you can actually bill clients and factors in things like sick days and holidays. The final step asks you to estimate how much profit you hope to make each year. Once you’ve plugged in all the numbers, the calculator generates the hourly rate you need to break even as well as what your ideal rate is to reach your profit goal.
Of course, what you ultimately charge your clients will depend on several other factors, like what kind of experience you have, what the market will bear, and so on. However, this tool is a great launchpad for figuring out how to charge people what you’re worth while making sure you’re covering your financial bases. Once you’ve got plan in place, be sure to check out our post on how to freelance without quitting your day job for more great tips. Thanks, J!
Hourly Rate Calculator [Freelance Switch]