Question 1

How is the recommended hourly rate calculated?

Accepted Answer

The rate is calculated considering your desired salary, business expenses, taxes, profit margin, and monthly billable hours. The formula includes all these factors to ensure you cover your costs and achieve your desired margin.

Question 2

What are billable hours per month?

Accepted Answer

These are the hours you can actually charge clients each month, excluding administrative time, marketing, training, and breaks. A typical freelancer bills 100-140 hours monthly out of 160-170 working hours.

Question 3

Should I include all personal expenses in business expenses?

Accepted Answer

No, only include expenses directly related to your business: internet, software, equipment, office, marketing, professional insurance, etc. Personal expenses are covered by your desired salary.

Question 4

What profit margin is recommended?

Accepted Answer

A 15-30% margin is common for freelancers. Higher margins (30-50%) are possible with high specialization or experience. Consider reinvesting part of the profit in business growth.

Question 5

How do I use the competitiveness analysis?

Accepted Answer

Compare your calculated rate with the market average in your area and specialty. If it's much higher, consider adjusting expectations or highlighting your unique value. If much lower, you might be undervaluing yourself.

Freelance Pricing Calculator