How to Calculate Your Hourly Rate as a Freelance Writer
“How much do I charge?” is a question I get a lot from fellow freelance writers.
As someone who has charged as little as $15/hour and who now charges $750/hour, I’ve charged so many different rates over the past 8 years and can give you an expert’s opinion on what makes sense to charge at different stages in your freelance writing journey.
What's Factored Into Your Rate as a Freelancer
I get a lot of potential clients reach out to me on this blog asking for me to work below my rate or to forgo my rate for credit/equity on the book or finished project.
It speaks to the fact that most people misunderstand why freelance writers charge what they do, and why we won't work below our rates (aside from being insulting of our time and skill level!)
I understand the need to negotiate, but clients need to know that there are freelancers who charge a wide range of rates based on their experiences, and those clients can search through freelance platforms like Upwork to find the freelancer who fits their budget.
So let's shed some light on what goes into factoring a freelancer's rate. If you're a freelancer, this is a great opportunity to make sure you truly are asking for enough to pay the bills. If you're someone who hires freelancers, this is a great reminder that freelancers need to think about all the below, especially if they're full-time freelancers.
Education & Skills Training. As a freelance writer, we have paid or are paying for past and current education and skills training. Whether that's student loans, continuing education classes, or other kinds of workshops, books, or courses — learning never truly ends. We have to factor this kind of training into our rates so we can continue to deliver quality deliverables and continue to hone our craft.
Healthcare, Vacation, and Sick Time Off. Despite being remote workers, we can't always be working. Our rate has to be enough so that we can take time off when we're sick or burned out. We also have to pay for health insurance out-of-pocket — and this is often much higher since our deductibles tend to be sky-high and things like dental and vision can add up quick on top of our health insurance fees.
Unpaid Administrative Work. Just like any business, we have to deal with the administrative side of our work. This means unpaid calls with potential new clients, submitting proposals for new jobs, updating our websites and portfolios, submitting invoices, etc. Unlike traditional full-time employees, we don't get an annual salary, so this work goes unpaid and we have to factor this time into our rate since our billable hours often don't cover it.
Taxes & Fees. We have to factor taxes into our earnings, as well as all of the fees associated with different platforms such as Upwork that take 10% of our earnings. Most freelancers have to work with accountants on an ongoing business to manage our work as our taxes are more complicated than someone with a salary.
Equipment, Tech, Phone Bills. Depending on the kind of work you do, you need equipment and things to do your work properly. Whether that's something as simple as a laptop, smartphone, and super fast Internet — these are all business expenses that we have to factor into our rates.
Marketing Costs. This could cover something like website hosting — or if you need to market your services — expenses like Instagram or Facebook ads. It also includes things like business cards to hand out at networking events or mixers.
Our "Office" & Additional Utilities. If you have enough space to work from home, that's great! You can avoid having to rent out an office space, but you still have to pay for the additional utilities from being home all day that you wouldn't be paying if you were working a traditional office job instead.
Living in Expensive Cities. I’ve exclusively worked and lived in expensive cities most of my life. This is great because it gives me access to a unique network of people, lots of great learning opportunities, and other resources and events that enrich my life and make me a better (and happier!) writer. I’m a city gal and I have to factor this into my rates as well, just like every other freelance writer. As cost of living rises, our rates need to also rise to match them.
Last year, I raised my rates to $750/hour — and haven’t looked back! While this may seem high, once you factor in my unique experience, credentials, education, and all of the above — it's aligned with my skills and experience as an expert writer.
I'm also in high demand, so I'm constantly turning down clients which is why I’m able to charge this much. It's important to me that I keep the quality of my work high, and that I have the option to take on only the projects and clients I believe in.
Keep in mind energy management — not just time management — when you're setting rates and organizing your schedule. I’ve written at length about this topic in my book Six-Figure Freelance Writer.
Note that as a freelancer, you probably won't be putting in 40 billable hours a week every week (depending on your client base and type of freelance work.) So much of that time is taken up by administrative work, marketing your services, emailing clients, sending invoices, etc. that 40-80 hour workweeks aren't necessarily the norm depending on the field you're in.
That's why your income should be diversified, with fixed-rate retainers, hourly work, and passive income.
You can start at a lower hourly rate, and then once you gain experience, clients, and testimonials, slowly raise your rates. That's why it's better to start off freelancing part-time before making the leap.
Other Things to Consider When Setting Your Freelance Writing Rates
The nice thing about freelance platforms like Upwork is that you can snoop around other freelancer's profiles and see who's charging what and what their experience looks like.
Before you set your rates, see what others are charging, and then use a freelance rate calculator to calculate your expenses and what you need to make to pay the bills.
You'll also need to consider fixed-rate versus hourly rates versus retainers:
You should charge a fixed-rate for projects with super-clear deliverables and guidelines. You need to be upfront with your client when it comes to the timeline and scope of this project, and I recommend charging half upfront and half upon completion.
Use an hourly rate when you're not entirely sure how long a project will take, or if there are a lot of back-and-forth revisions and complex aspects to it. This is great if you have clients who want to work at their own pace with you and need a flexible option when it comes to their project.
If you're doing a long-term project, consider negotiating a fixed-rate monthly retainer. For x amount, you'll be working on their project, and setting flexible milestones on progress as you go. This is great for long-term projects because you can allocate the bandwidth you need to a project and have an expectation that you're going to be doing a certain amount of work for that client per month. This can be better than hourly fees because hourly clients can often disappear and it's hard sometimes to get your schedule in order to hit your income goals if you don't have some sort of steady monthly income. However, it's a less flexible option for your client and some prefer hourly instead.
✍️ Find High-Paying Writing Jobs on My Job Board
Lots of cool writing jobs come across my desk — and I'm here to share these curated opportunities with you. Want to work remotely from Paris or at home in your PJs? Subscribe now to get high-paying writing work straight to your inbox!
