How Much Should You Really Be Charging? (Spoiler: It’s More Than You Think)

If you’ve ever quoted a project and felt a pit in your stomach that you undercharged—congrats, you’re a real gig worker. Most freelancers and side-hustlers start by guessing their rate, then get stuck there.

But here’s the truth: you’re probably charging too little—and it’s costing you more than just money.

Step 1: Know Your Bare Minimum

This isn’t just about what you want to earn—start with what you need to survive.
Take your monthly expenses (housing, food, insurance, etc.) and divide by the number of hours you realistically work each month.

Example:
$3,000 in expenses ÷ 80 billable hours = $37.50/hour

That’s your survival rate—before taxes or profit.

Step 2: Add 30–40% for Overhead & Taxes

As a freelancer or 1099 worker, you’re covering:

• Self-employment tax (~15%)
• Admin time (invoicing, emailing, pitching)
• Tools, software, downtime

Add a 30–40% margin to that base number.

Now we’re looking at $50–$55/hour just to keep your business sustainable.

Step 3: Factor in Value, Not Just Time

Do clients pay for your time, or your impact?
A social media manager who doubles a brand’s engagement isn’t charging for “hours”—they’re charging for results.

Start moving from “what’s fair” to “what’s valuable.”

Step 4: Practice Saying It With Confidence

You don’t need to explain your rate in an essay. Try this:

“For this scope, I charge $X. That includes delivery, revisions, and full rights.”

The most successful freelancers charge more because they trust themselves.
Start there.