Question 1

Why is my freelance rate so much higher than my salary?

Accepted Answer

As a freelancer, you pay self-employment tax (15.3%), your own health insurance ($3K-15K/year), business expenses, and don't get paid vacation. A $100K salary converts to roughly $75-90/hr freelance to maintain the same take-home.

Question 2

How many hours per year are actually billable?

Accepted Answer

Realistically, 50-65% of your working time is billable. The rest goes to sales, admin, marketing, professional development, and unbilled project management. At 40 hrs/week, expect 20-26 billable hours per week (1,000-1,300/year).

Question 3

How do I raise my rates with existing clients?

Accepted Answer

Give 30-60 days notice, frame it as keeping up with market rates, offer to lock in current rates for a longer-term contract, and have the conversation before starting a new project. Raise rates annually (3-10%) to avoid large jumps later.

Freelancer Rate Calculator — Minimum Hourly Rate Tool

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