How to Price Freelance Services (Hourly, Project or Retainer)

In this article

1. Start with your floor: the minimum you can charge
2. The four main pricing models
3. Check the market, then position yourself
4. How to present your price
5. When and how to raise your rates
6. FAQ

Start with your floor: the minimum you can charge

Before thinking about what the market will pay, work out what you need. Add the salary you want, your business expenses, self-employment tax and a buffer for slow months, then divide by the hours you can realistically bill. Most freelancers can bill only 50 to 75% of their working hours, because finding clients, admin and invoicing take time too.

That number is your floor. Charging less means you're subsidizing your clients.

The four main pricing models

Hourly

You bill for time spent. It's simple and fair when the scope is unclear or keeps changing. The downside: you earn less as you get faster, and clients may watch the clock. Best for open-ended work, ongoing support and early in your career.

Project (fixed price)

You quote one price for a defined result. Clients like knowing the cost, and you're rewarded for working efficiently. The risk is scope creep, so define deliverables, number of revisions and what costs extra in writing. To price a project, estimate the hours, multiply by your rate, then add 15 to 25% for unknowns.

Retainer

The client pays a set monthly fee for an agreed amount of work or availability. Retainers smooth out your income and are ideal for ongoing work like marketing, bookkeeping or IT support. Spell out what's included and what happens to unused hours.

Value-based

You price based on what the result is worth to the client. If a new checkout flow will add $200,000 a year in sales, a $20,000 fee is easy to justify, even if it takes you 60 hours. It needs strong discovery conversations and a track record, but it's how experienced freelancers earn the most.

Check the market, then position yourself

Look at what others with similar skills charge in your niche: job boards, freelancer marketplaces, industry surveys and peers. Then decide where you fit. Specializing in an industry or problem ("Shopify speed optimization for apparel brands") lets you charge more than a generalist, because clients see you as the lower-risk choice.

How to present your price

• Lead with the outcome, then the price. Remind the client what they're getting and why it matters.
• Offer three options, such as basic, standard and premium. Most people choose the middle one, and some choose the top.
• Don't discount on the first ask. If the budget is tight, remove scope instead of cutting your rate.
• Ask for a deposit on projects, and set clear payment terms.

When and how to raise your rates

Signs it's time: you're booked solid, you win nearly every proposal, or you haven't raised prices in a year. Raise rates for new clients first. For existing clients, give 30 to 60 days' notice in writing, explain briefly, and thank them. A 10 to 20% increase is common, and most good clients will stay.

Frequently asked questions

How do I price my services as a beginner?

Calculate your minimum rate from your costs and goals, then compare it with what others at your level charge. Price at or slightly below the market while you build a portfolio, but never below your minimum.

Should I put my prices on my website?

Showing starting prices ("projects from $3,000") filters out clients who can't afford you and saves time. Full price lists work best for standardized services; custom work is usually better quoted individually.

How do I handle a client who says I'm too expensive?

Ask what budget they have in mind, then offer a smaller scope that fits it rather than lowering your rate. If there's no overlap, it's fine to walk away politely.

What's a good markup on materials I resell to clients?

Many trades add 10 to 30% to the cost of materials to cover the time and risk of sourcing them. Use the profit margin calculator to see what margin your markup produces.

This article is general information for US readers, not legal, tax or financial advice. Rules, prices and platform policies change, so confirm details with official sources or a qualified professional.