Pricing freelance work is one of the hardest parts of being self employed.
Charge too little and you feel resentful, overworked, or stuck. Charge too much without confidence and you hesitate to send quotes at all. Most freelancers underprice not because they lack skill, but because they lack a clear pricing framework.
This guide walks through a simple, realistic way to price freelance work using three common models, and shows how to use the right calculator for each step.
Start with your required hourly rate
Before thinking about projects or retainers, you need a baseline. That baseline is your minimum sustainable hourly rate.
This is not what clients pay yet. It is what you need to earn to hit your income goal.
To calculate it, you need:
- Your target annual income
- How many hours per week you can realistically bill
- How many weeks per year you actually work
Many freelancers assume 40 billable hours per week. In reality, admin, emails, planning, and breaks reduce this significantly.
A realistic starting point is often 20 to 30 billable hours per week.
Use our Freelance Rate Calculator:
Calculate your hourly rate
This gives you a clear number to anchor every pricing decision that follows.
Understand the difference between hourly and project pricing
Once you know your hourly rate, the next question is how to charge for actual work.
There are two common approaches:
- Hourly pricing
- Fixed project pricing
Hourly pricing
Hourly pricing is simple and transparent. You charge based on time spent.
It works best when:
- Scope is unclear
- Work may change frequently
- The client wants flexibility
The downside is that efficiency is punished. The faster you work, the less you earn.
Project pricing
Project pricing charges a fixed amount for a defined outcome.
It works best when:
- Scope is clearly defined
- You understand the work well
- You want to reward efficiency
The key risk is underestimating time.
To compare both models realistically, you need to look at effective hourly rate, not just the headline price.
Use our Hourly vs Project Pricing Calculator:
Compare pricing models
This tool shows:
- What hourly billing would earn
- What a project price earns based on actual hours worked
- The difference between the two
If your project price produces a higher effective hourly rate, it usually means you are pricing value instead of time.
Why most freelancers undervalue projects
Undervaluing usually happens for three reasons:
- Underestimating total hours
- Forgetting non billable work
- Leaving no margin for revisions or meetings
If your project pricing always matches your hourly total exactly, you are likely undercharging.
Project pricing should usually earn more than hourly work, not the same.
When retainers make more sense
Retainers are ideal for ongoing work where clients want availability rather than a fixed outcome.
Common examples:
- Monthly design support
- Marketing assistance
- Development maintenance
- Content creation
The mistake freelancers make with retainers is pricing them like discounted hourly bundles.
A proper retainer includes:
- Expected hours
- Your hourly rate
- A buffer for flexibility and scope creep
That buffer protects your time without renegotiating every month.
Use our Retainer Pricing Calculator:
Calculate a fair retainer
This calculator adds a percentage buffer on top of your base hours so your retainer remains sustainable long term.
Choosing the right model for each client
There is no single best pricing model. Strong freelancers choose based on context.
Use:
- Hourly pricing for uncertain or exploratory work
- Project pricing for defined outcomes
- Retainers for ongoing relationships
What matters most is that every model traces back to a rate that supports your income goals.
A simple pricing workflow
If you want a repeatable system, use this order:
- Calculate your minimum hourly rate
- Decide which pricing model fits the work
- Validate project or retainer pricing against your hourly baseline
- Add buffer where uncertainty exists
This removes emotion from pricing and replaces it with clarity.
Final thoughts
Pricing confidently is not about charging the highest possible number. It is about charging enough to do your best work without stress or resentment.
When your pricing supports your life, clients feel that confidence too.
If you ever feel unsure, return to the numbers. They rarely lie.
Helpful tools from UseKit
-
Freelance Rate Calculator:
https://usekit.net/freelance-rate-calculator -
Hourly vs Project Pricing Calculator:
https://usekit.net/hourly-vs-project-pricing-calculator -
Retainer Pricing Calculator:
https://usekit.net/retainer-pricing-calculator