How to price your services as a freelancer: a helpful guide
Figuring out how to price your services as a freelancer can feel overwhelming — even if you’ve been in business for a while. Maybe you’re second-guessing your numbers, undercharging out of habit or worried you’ll lose clients by raising your rates. Whether you’re trying to scale your business, attract higher-paying clients or create financial stability, refining your pricing strategy is a useful step forward.
As a business coach and strategist for service providers, I often help freelancers navigate pricing in a way that feels aligned to them. The goal isn’t just to pick a number — it’s to build a rate structure that supports your goals, values your expertise and attracts the right clients.
In this guide, we’ll explore a step-by-step approach to price your services confidently and sustainably. From understanding different pricing models to calculating your ideal rates and communicating them with clients, you’ll learn how to effectively set or update your prices.
Freelance pricing models
Before setting or increasing your rates, it's important to understand the different ways you can charge for your work. Common freelance pricing models include hourly, project-based, tiered and retainer rates.
Hourly pricing
You track your time and charge clients based on the number of hours you work. This method is simple and transparent, making it easy to track time and bill accordingly. However, hourly rates can cap your income and may undervalue your expertise or efficiency, since freelancers often get faster at their work over time.
Hourly pricing example: A freelance graphic designer charges $100/hour to update marketing material for a small business on an as-needed basis.
Project-based pricing
You set a flat rate for the entire project, regardless of how long it takes. This allows clients to budget upfront and rewards you for efficiency, since you’re not earning less for working quicker. Project-based pricing works best when the scope is clear and deliverables are defined from the start.
Project-based pricing example: A web designer charges $5,000 to design a custom website for a startup.
Tiered pricing
You offer multiple levels of services or deliverables at different price points. This provides options that can appeal to a broader range of clients, increases perceived value and can encourage upselling to higher tiers. For tiered pricing to be successful, you need to make sure your offers are refined and clearly differentiated between tiers.
Tiered pricing example: A photographer offers three packages, each with a different number of photos and length of session.
Retainer or monthly package
You charge a set monthly fee for ongoing work or a bundle of services delivered over time. This creates predictable income and long-term client relationships. Retainers are ideal when clients need consistent support, such as monthly strategy calls, content creation or maintenance.
Retainer or monthly package example: A freelance writer charges $1,000 per month to deliver two blog posts.
How to price your services as a freelancer: 7 steps
Before you can confidently set your prices, you need a clear process that balances market rates, personal goals and business needs. The following steps will guide you through pricing your services as a freelancer so you can charge with clarity and confidence.
1. Research industry standards
Look at what others in your niche and experience level charge. This usually varies, but it can give you an idea of going rates.
If you’ve been freelancing for a while, you may know other freelancers who’d be happy to discuss rates. You can also research industry standards via a freelance rate database and job boards.
2. Identify your goals
One of the most significant benefits of freelancing is flexibility. Your pricing should reflect your ideal lifestyle and clients.
Ask yourself:
How much do I want to earn each month?
How many hours do I want to work?
Who is my ideal client, and what can they afford?
For example, if your goal is to work 30 hours weekly and earn $7,000 monthly, your rates need to reflect that.
3. Account for expenses and taxes
When pricing your services as a freelancer, your rates should cover more than your time. You also need to consider overhead, tools and taxes.
When setting your rates, consider:
Software subscriptions
Marketing costs
Equipment
Professional development
Non-billable work
Health insurance
Taxes
4. Consider the scope and value
While the scope and time of your work are important, the value of your work also matters. What outcome do you offer your clients? Your work might save them time or drive monetary results. If so, you want to consider that in your pricing.
For example, I helped one client increase their customer base by 150% through content writing, making this project more valuable than just the time spent on writing tasks.
5. Assess the client
A client’s type of business and even their location will affect how you price your services as a freelancer. For example, a solo small business founder with a tight budget usually can’t pay as much as an established mid-sized company.
Consider the clients your offers generally serve and who you enjoy working with to help determine your rates. If you’re at least a few years into freelancing, you likely have a good idea of your target audience’s budget. If not, I strongly recommend asking this when you’re speaking to a prospective client (even better if you can pre-qualify them).
If a client's budget is lower than your standard rate and you still want to work with them, consider adjusting the scope of work rather than lowering your prices.
6. Calculate your minimum rate
While every freelancer needs to consider different numbers for their minimum rate, the simple formula below is an example of how you can calculate your minimum rate.
(monthly income goal + monthly business expenses) ÷ available billable hours = minimum hourly rate
Then, add a 20-30% buffer for taxes and non-billable time.
7. Review your rates often
You should revisit your pricing at least once or twice a year, or whenever:
You’re consistently booked out
You’ve added new skills or certifications
Your current rates don’t feel sustainable
What to avoid when pricing your services as a freelancer
To keep your rates fair and sustainable for both yourself and your clients, try to avoid the following:
Undercharging out of fear or comparison: It’s tempting to lower your rates to win a client or compete with others, but this often leads to burnout and low-quality leads.
Forgetting to factor in expenses and unpaid time: If you only charge for your working time and don’t include taxes, admin hours or business tools, you’re not accounting for the full cost of freelancing.
Overcomplicating your pricing: Offering too many services and pricing options can overwhelm potential clients and create scope creep.
Raising rates without notice or explanation: If you increase your prices abruptly, especially with long-term clients, you risk damaging relationships or appearing unprofessional.
Communicating your rates with clients
Setting your rates is one thing — confidently communicating them is another. Here’s how to clearly and professionally share your pricing with current or potential clients:
1. Be transparent early on
Share your starting rates on your website, service guide or discovery call. This helps filter out leads whose budgets don’t align.
Depending on your offer(s) and pricing model, you can share exact prices or say something like, “Most clients invest between [insert price range here] for [type of service].”
2. Outline pricing clearly in proposals and contracts
Avoid vague pricing, like “TBD” or “depending on scope.” Be specific about deliverables, timelines, revision policies and what’s included at each rate.
Tip: Use bullet points or a breakdown of tiers so clients see the whole picture — and the value.
3. Handle discount requests with grace and boundaries
It’s not uncommon for clients to ask for a discount, but don’t feel pressured to agree. You can hold your pricing and stay polite. For example, you might say, “I completely understand budget considerations. I’m happy to explore a smaller scope that fits your range while still delivering value.”
4. Reinforce the value behind your pricing
Your rate isn’t just about your time; it’s about the results you deliver. Speak to outcomes, not just outputs.
Instead of simply stating your rate, let clients know what’s included and what they’ll walk away with. For example, “This package is $5,000 and includes strategy, design and implementation, so you walk away with a launch-ready site that converts visitors into clients.”
5. Communicate with confidence
Even if you’re still working on mindset, present your pricing without apology or hesitation. The more you do this, the more natural it becomes.
Clients take cues from your tone. They’re more likely to be confident in your rates if you are.
How to raise your rates
Perhaps you’ve determined it’s time for a price increase. Here’s how to increase your rates with current clients:
Give 30 to 60 days’ notice via email or during a check-in call
Explain the reason (e,g., increased experience, scope growth, etc.)
Emphasize the continued value they’ll receive
Offer a smaller scope if your new rate isn’t within their budget
How to price your services as a freelancer: conclusion
We hope you found this article helpful and gained a better understanding of how to set and communicate your rates. By choosing a pricing model that aligns with your business, determining a rate that supports your objectives and clearly communicating your value, you set yourself up for long-term success.
If you’d like additional support pricing your services as a freelancer, Scribe National is here for you. I love helping freelancers build a sustainable business through clarity and a strategic plan. Explore business coaching offers or book a free discovery call.
