Working as a freelancer means learning how to price your work.
That price should cover your costs while remaining attractive to clients. Charging too little reduces your margin and forces you to work longer hours; sometimes you end up accepting so many projects you can’t deliver. Charging too much, especially if you have little experience, can drive opportunities away. In Latin America, inflation and currency devaluation also force freelancers to adjust rates frequently to avoid losing purchasing power.
So, how do you set your rates without hurting your workload? Choose the right pricing model, study the market, and communicate clearly. Here’s how to estimate fair rates.
Define your base rate
Before publishing your services, make a list of your fixed monthly expenses (for example, rent, utilities, subscriptions, etc.) and then add your variable costs (such as platform fees, taxes, or depreciation and maintenance of your work tools). Divide the total amount by 160—the standard working hours in a month—to know the minimum hourly rate you shouldn’t go below.
Choose the pricing model
Hourly rate: This is most commonly used when the scope of the project is undefined or requires research. One advantage is that it’s easy to calculate and explain. On the downside, you can’t give the client a specific figure, only an estimate.
Per project: In this case, the price depends more on the result being sought than on the hours you’ll work. That means you set a fixed price based on the deliverables, not the time spent. Of course, this requires efficiency and speed—if you finish early, you earn more.
Packages or “productized” services: Here, several complementary services are bundled into one fixed offer (for example, website design plus monthly maintenance). The advantage is flexibility: you can add or remove parts to make negotiations easier if the client asks for discounts. It also reduces debates about project scope since everything is defined upfront.
Value-based pricing: This depends on the value you create for the client. The idea is to deeply understand the client’s goals and business vision. You need to translate technical features into “business benefits,” showing how your work helps the client reach goals, increase revenue, or reduce costs.
Your rate in this case can be justified with data and ROI (return on investment) examples.
Research your market (but don’t copy rates)
It’s always a good idea to check the price ranges of other freelancers in your niche—especially those with similar skills and experience. Don’t copy their prices exactly, but use them as a reference. You can find these benchmarks in professional communities, surveys, or social networks. If your peers charge much more for equivalent work, it may be time to adjust your rates. Remember, your price should reflect your experience, project complexity, and added value.
Adjust your proposal for international clients
Since inflation and currency volatility make prices fluctuate too much, it’s better to set your rates in U.S. dollars or euros for international clients. This way, you protect your income while staying competitive in markets with higher purchasing power. Many clients compare prices in dollars and ignore proposals in unfamiliar currencies.
Offer anchors and options
A good way to present your proposal is by creating service levels, such as basic, standard, and premium.
The central plan acts as a reference point, and you add extras around it, making the other options look more affordable. You can vary the scope, delivery time, or number of revisions allowed per level.
Set an anti–scope creep policy
Scope creep happens when clients ask for extra tasks or deliverables not included in the original budget. To avoid this, clearly define what is included and excluded from the project, and set payment milestones. If new requests arise, apply an additional price list for extra tasks—either per task or per project.
When and how to raise your rates
If you’ve never reviewed your rates, if you feel your income isn’t enough despite working a lot, or if you’re receiving more work than you can handle, it’s time to recheck your pricing. Another good time to raise rates is when you’ve gained new skills or when demand for your current skills increases. Add these to your portfolio so clients see your expertise. Believe it or not, not all clients negotiate based on price.
Metrics to define and adjust your prices
To know if your rates are right, measure your proposal win rate and client renewal rate. Calculate your profit per hour by subtracting costs and dividing by all hours invested (including admin work). Also estimate customer lifetime value and the non-billable time you dedicate to each project.
Negotiate strategically
Negotiation doesn’t mean lowering your rates right away. First, understand the client’s goals and budget. Present your mid-tier package as the standard, and if the client has limitations, adjust the scope or timeline instead of giving a discount. Frame any price reduction as fewer deliverables. Support your offer with success stories and ROI data. End the negotiation with clear timelines and conditions to avoid misunderstandings.
Pricing psychology and presentation
For ongoing plans, round numbers to convey stability. For one-off projects, using “.99” endings may feel more affordable. Highlight benefits before mentioning the price, offer milestone-based payments, and use clear contracts to avoid friction. A structured proposal with comparison tables communicates transparency and professionalism.
Checklist before sending your quote
Before sending a proposal, make sure you understand the client’s goal, confirm that the scope and schedule are realistic, that you offer multiple options. Include conditions about changes, payments, and rights. Reviewing these points minimizes misunderstandings and builds trust.
Conclusions
As you can see, setting rates requires knowing your costs, studying the market, and analyzing the value of your work. Calculate your minimum rate and choose the pricing model that best reflects it. Adjust your offer to the client’s payment capacity, but review your rates regularly, raising them gradually as the market evolves. Define clear delivery and scope policies, and use metrics for informed decisions.
Also remember, as you specialize, showcase results and negotiate confidently to charge better without losing clients.
Find new projects on our platform, where you’ll see opportunities tailored to your skills.
Need help calculating your rate? Check out our freelance calculator and don’t forget to review what being a freelancer entails at the link at the top.
