How to Price Yourself Fairly Without Undercharging or Scaring Off Clients

When I first stepped into the freelance lifestyle, it felt like pure freedom. No boss, no office, no clock. Then, the invoices came in, the bills piled up, and I wondered if my rates even covered groceries.

Okay, that might be an exaggeration. Or…is it? For some freelancers, it may not be.

Set your rates too low and you chase work all week for little reward. Set them too high and clients ghost after the first call. Somewhere between those two lines sits the fair price that keeps you paid and keeps clients close.

Finding it takes a clear look at your money needs, the market around you, and the value you deliver. This guide walks you through each step so you can stop second-guessing, start charging with confidence, and build a freelance career that lasts.

The Psychology of Pricing as a Freelancer

In 2023, Upwork found that nearly 38% of the U.S. workforce, or about 64 million people, do freelance work. That’s four million more than the year before.

Together, those freelancers earned around $1.27 trillion. With so many people building careers this way, pricing is clearly one of the most important aspects of freelancing. The way you set your rates affects how clients view freelancers as a whole and how the market grows.

So, where do you start?

When I began my freelancing career, I made the same mistake many do—I charged too little. But I’m here to help you avoid that mistake.

Start by reminding yourself that money is never just numbers on a page. It carries weight, fear, and pride. That’s why pricing feels harder than picking colors for a logo or drafting words for a client blog.

When you set a rate, you’re doing more than naming a dollar figure. You’re also signaling what you think your time, skill, and energy are worth.

When getting started, many freelancers charge too little. The reasons sound familiar. You want that first client, you don’t want to scare people away, and you worry that someone else can do the job cheaper. This cycle builds quick but dangerous habits. Low rates bring low-budget clients, and before long, you’re overworked, underpaid, and exhausted. Worse, you teach people to see your work as a bargain instead of an investment.

The flip side is just as risky. Setting high rates without the proof to back them up can drive away good clients who might have been willing to grow with you. Pricing is a balance between fair income for you and clear value for the client.

So, as you learn how to price yourself as a freelancer, remember that pricing is a psychological signal:

• The number you name is the first story you tell about your work.
• Low rates can limit your income and impact the level of respect a client brings to the table.
• Clients often treat high-priced work with more care because they’ve invested more in the outcome.
• Confidence in stating a price builds trust faster than a discount ever will.
• Every time you raise your rates, you set a new baseline for the kind of ideal clients you attract.

Know Your Numbers Before Setting Rates

Learning how to price yourself as a freelancer begins with understanding the math behind your finances.

You can’t pick numbers out of thin air and hope they work. That was me when I first started. Don’t make the same mistake.

You need a baseline that proves every itemized invoice covers your costs and leaves profit on top.

Many freelancers deal with money stress. According to a recent Payoneer report, only 38% of people reported that their rates increased. Almost half (46%) held their rates steady. The rest saw their rates drop.

Don’t be part of this statistic. Build a business that doesn’t drain you. Build one that supports you.

Look at Personal Expenses

Rent or mortgage, utilities, groceries, phone plan, insurance, childcare, transportation, loan payments, and anything else that keeps your life running. Add long-term goals too, like retirement savings, debt repayment, or a vacation fund.

When you’re setting your freelance rates, it’s easy to forget how much day-to-day costs and long-term financial goals add up. A personal loan calculator can be helpful here because it shows you exactly how different repayment amounts would fit into a monthly budget. Looking at those numbers can give you a clearer sense of what kind of steady income you need to stay on track with bills, savings, or debt repayments.

Once you know that baseline, you can work backward to figure out what you should realistically charge per project or per hour. It’s a simple way to connect the dots between your personal finances and the professional rates you set, so you’re not undervaluing your work.

Add Business Expenses

This includes software subscriptions, hardware, internet, coworking space, professional memberships, marketing, and taxes.

Don’t forget self-employment tax and quarterly estimates. Rather than building these expenses in from the start, many new freelancers skip this step and only realize later that half their earnings disappear into business overhead.

Figure Out How Many Billable Hours You Can Work

If you want to work 30 hours per week but only 20 are billable after emails, invoicing, and admin, then 20 is your true base.

Over a year, that’s about 1,000 billable hours if you take vacations and holidays. This is crucial because dividing your target income by inflated hours gives you a sense of false security.

Do the Math

Take your annual expenses (personal + business + savings goals) and divide by your billable hours. That’s your minimum hourly rate.

For example, if your target income is $75,000 and you can bill 1,000 hours, you need at least $75 per hour just to break even, and anything less means you’ll lose money.

Think About How You’ll Charge

Most freelancers use one of three pricing methods: hourly fees, project-based pricing, or retainers. Each has its benefits and drawbacks, but a combination of the three may be the best solution if you find yourself offering a collection of services.

For example, they use hourly for small, one-off tasks, project rates for clear deliverables, and retainers for steady, high-paying clients who want ongoing work.

Set a Walk-Away Number

This is the minimum acceptable rate you’ll accept without resentment. It protects you from saying yes to projects that drain your energy. If a client can’t meet your baseline, you politely decline. Walking away feels scary at first, but it saves you from burnout and opens space for better work.

Factor in Growth

Your first rate isn’t your forever rate. Revisit your numbers every 6 to 12 months. As skills improve and demand rises, your baseline shifts upward.

This is how you stop crawling for survival and start building a business that funds your future.

Research the Market and Industry Standards

I can tell you firsthand that guessing leads to stress when pricing your freelance services.

Research gives you a range, a reason, and a way to explain your price without wobble. Use the steps below as a full playbook:

1. Define Your Market Before You Look at Numbers

• What do you sell? Services, outcomes, or both?
• Who buys it? Local small businesses, funded startups, or enterprises?
• What niche are you in? Example: B2B SaaS writer, brand designer, Webflow dev, revops consultant.
• What problem do you solve? Leads, conversions, compliance, uptime, retention?

Looking at how to price yourself as a freelancer from this lens keeps you from copying rates that don’t fit your work.

2. Build a First Range From Real Signals

• Scrape public signals. Read agency service pages, proposal templates shared in communities, public rate cards, and job posts with budgets.

• Scan platform ranges with care. Look at top-rated profiles in your niche and region. Filter by “hired” and “repeat clients.” Ignore outliers.

• Ask three peers. Trade anonymized ranges with people at your level. Offer yours first.
• Read salary and day-rate reports. Use them as a floor, not a ceiling, since employees don’t pay self-employment tax or downtime.

Put all figures in a single list. Drop the lowest and highest. The middle cluster is your market band.

3. Adjust the Band for Your Positioning

• Specialization: Rare skills or regulated domains raise rates.

• Proof: Case studies, metrics, and recognizable clients support the high end.

• Speed and reliability: Fast, on-time delivery adds value.
• Capacity: Limited slots justify premium pricing.

Pick a starting point inside the band, then nudge up or down based on these four levers.

4. Correct for Geography and Cost Inputs

Freelancers should take a page from the small business book when it comes to pricing. For example, roofing contractors have to ensure they charge enough to cover their costs and still make a profit. Those costs vary greatly depending on location, too. A California roof replacement may cost more than one in Oklahoma.

The same will be true for freelancers. Location, supplies, equipment, and travel all add up and must be included in pricing before the profit margin is applied. That’s not being greedy, that’s making sure you stay in business so you can keep helping clients.

So, when determining your freelance rates, adjust for:

• Your cost of living
• Client’s location and budget norms
• Travel, on-site work, and local taxes

If you serve national clients, make a coastal rate and a heartland rate, or set one fixed rate and a project-based fee with a line for travel and on-site days.

5. Segment by Client Type

Create simple multipliers so your price fits the buyer:

• Local small business → Base rate
• Funded startup → Base x 1.2 to 1.5 for speed, meetings, and pivots
• Enterprise → Base 1.5 to 2.0 for compliance, legal, and long cycles

Use your judgment. The goal is to establish a consistent rule that you can defend.

6. Convert “Market Rate” Into Packages Clients Understand

Turn your range into three main tiers:

• Core: The must-have outcome with a tight scope of work

• Standard: Core plus the common add-ons clients ask for

• Premium: White-glove service, faster timeline, deeper strategy, or extended support

Price steps should be clear, not cramped. Many readers land in the middle tier when the value is obvious.

7. Define the Scope as Your Research Holds

Rates fail when the scope is fuzzy. Lock down:

• Deliverables and format
• Timeline and milestones
• Number of concepts, rounds, or revisions
• Inputs you need from the client and due dates
• What is out of scope, and how change orders work

8. Price for Usage and Risk When It Applies

• Writers: Consider traffic, funnel stage, domain, and rights. Web-only vs. email vs. paid ads calls for different fees.

• Designers: Add usage rights by channel and duration. For example, national ads carry a higher fee than a local flyer.

• Developers: Charge for integrations, security, performance targets, and ongoing support.

• Consultants: Price for business impact and decision speed, not hours alone. If the work carries a higher risk, add a buffer or a contingency line.

9. Test, Track, and Tune

Treat every quote as data. Track:

• Quote amount
• Win or loss
• Pushback points
• Time to close

Some signals to watch:

• If 80% say yes in minutes, raise your rates.
• If most prospects stall, your rate may be fine, but the value story is weak.
• If price is the only objection from good-fit leads, improve proof and packaging before cutting numbers.

10. Use Market Research in Your Talk Track

Clients ask, “How did you get to that price?” Answer calmly with facts:

• “I based this on the market range for X, adjusted for your timeline and scope.”
• “This package includes A, B, and C with two rounds of revisions and handoff.”
• “Here are three results from recent projects like yours.”

Market logic plus proof builds trust. You don’t need to over-explain

Freelance Pricing Strategies That Won’t Scare Clients

According to Statista, about 55% of freelancers earn under $50,000 a year. For many, gig work is a side stream of income rather than their main job. For a long time, this was me before I started charging my true worth.

Here are some pricing methods that worked for me:

Lead with Value

Clients rarely care how long something takes. They care about the result. Instead of saying “I charge $60 an hour,” say “This project package is $600 and includes research, writing, revisions, and delivery.”

With value-based pricing, you frame the price around outcomes and avoid nitpicking over minutes

Use Ranges When Quoting Early

At the start, you don’t know all the details. A range signals flexibility and prepares the client for what’s realistic. Example: “For projects like this, rates usually fall between $1,500 and $2,000 depending on scope.”

Build Tiered Packages

Three options let clients self-select and also help prevent the “too expensive” pushback because clients see choice, not a wall. A Basic tier offers the bare essentials for budget-sensitive buyers, while the Standard tier is usually the sweet spot most will choose. Premium means faster turnaround, extra strategy, or extended support.

Anchor Your Pricing

Start with your highest package first. When a client sees a $3,000 option, the $1,500 feels reasonable by comparison. Anchoring shapes perception. If you only show one number, it floats in space without context.

Show the Math, Simply

Transparency builds trust. Break down what’s included. For example: “Research design and two rounds of edits are covered in this price.” You don’t need to list every minute, just enough detail to prove structure. Clients respect a process.

Present Prices with Confidence

How you deliver a price is just as important as the number itself. Say it once, clearly, and then stop talking.

Silence after quoting feels uncomfortable at first, but it shows you believe in your value. Over-explaining makes clients wonder if you’re hiding something.

Offer Room for Add-Ons

Discounts train clients to expect less for less. Add-ons let you flex without cutting your worth. Example: “If the full package is outside budget, we can scale back by removing social copy or reducing revisions.”

Use Professional Tools to Quote

Pricing yourself fairly can feel like a balancing act — charge too little and you undervalue your skills, charge too much and you risk losing clients.

That’s where contractor quoting software can make all the difference. Instead of relying on guesswork or outdated spreadsheets, these tools help contractors generate accurate, itemized quotes that account for materials, labor, overhead, and profit margins.

By standardizing the quoting process, you avoid undercharging while ensuring your rates stay competitive in the market. Plus, the professional, polished estimates produced by quoting software build client trust and reduce the risk of disputes down the road.

Some platforms even integrate with project management and invoicing tools, so you can move seamlessly from quoting to execution without duplicating work.

Tie Pricing to ROI When Possible

If your work can be linked to revenue, highlight that. Example: “This sales page investment of $1,200 paid for itself in two weeks when my last client saw a conversion boost.” Even if you can’t show exact numbers, emphasize time saved, stress reduced, or quality improved. Clients weigh price against payoff.

Know When to Walk Away

If a client insists your price is too high and won’t budge, don’t panic. Sometimes walking away is the best strategy. Undercharging just to land the project sets a precedent you’ll regret. Respecting your own baseline builds a lasting client base.

Follow up with Professionalism

Even if a client passes, thank them and leave the door open. Many return later after realizing low-cost work didn’t deliver. A respectful close keeps you on their radar.

Knowing When to Raise Your Rates

Setting a fair rate is one milestone. Knowing when to raise it is another. If you never adjust, inflation eats your income and your skills outgrow your prices.

On the other hand, if you hike too soon without proof, clients may walk. To achieve the right balance, I recommend tracking certain signals:

• You’re overbooked: A packed calendar means your rate is too low. High demand should push your price higher until supply and demand even out.

• Clients say yes too fast: If every client accepts your quote without pause, that’s not a win. It means you’re priced under the value they expected. Healthy pricing brings a mix of reactions: some yes, some negotiation, and some decline. A wall of fast yeses means it’s time to adjust.

• Results prove value: Better leads, conversions, or saved time justify higher pricing.

• Your skills improved: Faster, sharper client work deserves higher pay.

• Costs went up: Software subscriptions, taxes, and even groceries creep upward every year. Rising expenses and inflation demand a raise.

Other times to charge more include:

• The start of a new calendar year
• After completing a major project or earning a new certification
• When onboarding new clients
• After six months of a consistently full workload

If you decide to raise your rates, here’s what to do to make sure everything runs smoothly:

• Communicate clearly: For new clients, simply quote your new rate. For existing ones, give notice. For example, you could say, “Starting January, my standard rate for this service will increase from $X to $Y. This change reflects the results we’ve achieved together and aligns with current market standards. I value our partnership and wanted to let you know in advance.”

• Increase gradually: Doubling your price overnight can scare clients. Smaller increases (e.g., 10% to 20%) at a time are easier to absorb. Over a few years, that compounds into rates that reflect your worth without jolting your pipeline.

• Stand firm: The first time you quote a higher rate, doubt creeps in. Resist the urge to backpedal. If you’ve done the math, researched the market, and proven your value, your price is fair. Hold steady and let the client decide

• Review twice a year: Pricing isn’t set-and-forget. Put a reminder on your calendar every six months to review workload, income, costs, and demand. Ask: Does my current rate reflect my skills and the market? If the answer is no, adjust.

Endnote

If you’re learning how to price yourself as a freelancer, know your true costs, research what others charge in your field, and clearly package your services.

Lead with value, present rates with confidence, adjust when your skills and demand grow, and set firm boundaries. Over time, I realized that these habits created fair pricing that supported my income, attracted the right clients, and built a sustainable freelancing career.

Ready to put your new pricing into action?

You don’t need to spend hours scrolling job boards hoping to land clients who respect your rates.

With SolidGigs, you set the rules, and our team finds you leads that fit, all delivered straight to your inbox. That means less time chasing work and more time earning what you’re worth.

One more thing...

You didn't start freelancing to spend hours every week searching through job boards. You started freelancing to do more work you enjoy! Here at SolidGigs, we want to help you spend less time hunting and more time doing work you love.

Our team of "Gig Hunters"—together with the power of A.I.—sends you high-quality leads every weekday on autopilot. You can learn more or sign up here. Happy Freelancing!

Ivana Drakulevska

Ivana Drakulevska - Sr. SEO and PR with a flair for writing. When not optimizing content, she’s chasing after her overly opinionated pup or navigating the city on two wheels, proving that life is much more delightful on a bicycle. A relentless advocate for green politics, she believes marketing can be a force for good (because the planet deserves better branding).