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Setting Your First Freelance Rate (The Right Way)

Stop guessing — here's the formula every freelancer should use.

Setting Your First Rate

The biggest mistake freelancers make is anchoring on their old salaried hourly rate.

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Hourly rate = (Target income + Business overhead + Tax buffer) ÷ Billable hours

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Most freelancers bill 60–70% of their working hours. Tax buffer is typically 25–35%. Try our Freelance Rate Calculator for an exact number.