If you’re brand new to freelancing as a web developer, one of the first questions you need to answer is, “How much do I charge?” The fastest, easiest way to answer this question is using the magic freelance rate formula. It’s a two-step process:
- Think of a yearly salary that would allow you to live comfortably. If you were looking for a full-time job, what would you want to be paid?
- Divide that yearly salary by 1,000.
That gives you your hourly rate. If your ideal salary is $40,000, you need to charge $40 an hour. If you want to make, $58,000 a year, charge $58 an hour. If you want to cross that six-figure mark and make $100k, charge $100 an hour.
The magic formula isn’t perfect, but it gets you pretty close to a rate that should work for you. It has enough headroom built in to account for many of the costs and factors you might not think of when trying to determine your own rate, including allowing you to pay for your own benefits.
📗 If you’re looking for more accuracy, or if you want to be absolutely sure you have all your bases covered, the magic formula may not be for you. Check out my soon-to-be-released book Freelance Web Development Pricing instead. It’s the definitive guide to all things pricing when it comes to freelancing as a web developer. It will teach you to confidently set and justify your pricing. Hit the link to get a free chapter! 📗