Your freelance hourly rate is the price you set for one hour of your professional work. It's a fundamental way to bill clients for your time and expertise.
What is Freelance hourly rate?
A freelance hourly rate is the amount you charge a client for each hour of work you complete. It's a straightforward pricing model where your income is directly tied to the time you spend on a project. You agree on this rate with a client before starting work.
Why is this important?
Your hourly rate is the foundation of your freelance income. Setting it correctly ensures you cover your business costs, taxes, and desired profit. It directly impacts your financial sustainability and how clients perceive the value of your work.
How does it work?
You track the time spent on a client's project using tools or manual logs. You then multiply the total hours by your agreed rate to create an invoice. Payment is typically requested upon invoice submission, often on a weekly or monthly basis.
Pros and cons
The main pros are simplicity and fair compensation for all time spent, including revisions. Key cons include an income ceiling, as you can only bill so many hours, and potential client disputes over time tracking. It may also undervalue highly efficient work.
Conclusion
An hourly rate is a clear and common starting point for many freelancers. It's crucial to calculate yours carefully to reflect your true costs and value. Many experienced freelancers later transition to project-based or value-based pricing for greater earning potential.
Ready to freelance?
Download the HFS Freelancers app and discover flexible shifts in your area. Or explore more terms in our knowledge base.
