Freelancers: What's Your Worth? (A Guide to Calculating Your Hourly Rate)

How much should I charge? As a budding freelancer, you might that question and wonder how much you should ask for your services. Or yet, if you are an experienced transcriber, as you become more adept at what you do, you may begin to wonder on when you should increase your hourly rate and how much. 

Setting rates can seem like it's one of the most complex parts of freelancing but it doesn't have to be like that. Whether you are a newbie in the world of freelancing or a pro, it's quite important to set reasonable rates that will allow you to attract clients and employers without undervaluing yourself.

The first thing that you must do is to determine the lowest equivalent hourly rate you are willing to work for. If you are just starting off as a part time freelancer, you can calculate this depending on how much you value your time. You need to work for an amount of money that puts you in the right mindset to deliver a commendable service. If you do anything less, you may deliver poor work and end up damaging your reputation. As you develop as a freelancer, this may increase based upon how much you want to earn.

Next is the value of your service. It's essential to view your work through the perspective of your clients and from a commercial perspective. You can ask questions like: How will my work benefit the client? How will it affect their bottom line? The answer to these questions will dictate a part of the amount that you can charge. 

Aside from that, you should also consider the competition when calculating your rate. You should check on how others in the same level as you charge. If you find freelancers who charge cheaply while others charge more, you should always consider the average of it. Note that charging cheaply can mean a compromise of the quality of work they provide. So if you charge at a very low rate, clients and employers may think that the quality of your work is not excellent. Always take the quality of work that you can give into consideration. Not just on competition alone.

Finally, if you still have a hard time in calculating your hourly rate, you can check out the FreelanceSwitch Calculator to give you a guide based on your costs, number of billable hours and desired profit. It will only take you about 5-20 minutes to complete it depending on much you spend time as you give each calculation.