Question 1

Why is my calculated rate higher than I expected?

Accepted Answer

Freelancers must account for taxes (~30%), overhead costs, and non-billable time spent on admin, proposals, and sales. A freelancer earning $80k net needs to generate considerably more than $80k in revenue to take that home.

Question 2

What percentage of my time is typically non-billable?

Accepted Answer

Most freelancers find 20–35% of working time is non-billable — used for writing proposals, chasing invoices, emails, marketing, and professional development. New freelancers often underestimate this heavily.

Question 3

Should I charge a day rate or hourly rate?

Accepted Answer

Day rates are often preferable for experienced freelancers as they discourage micromanagement of hours and feel more substantial to clients. Hourly rates work better for uncertain-scope or ongoing support work.

Question 4

Is this rate what I should quote clients?

Accepted Answer

This is your floor — the minimum needed to hit your income goal. You should quote at or above this rate. Add 10–20% buffer for scope creep, revisions, and negotiation room. Never quote below your floor rate.

Question 5

How many weeks of vacation should I factor in?

Accepted Answer

Factor in 4–6 weeks minimum (public holidays, sick days, genuine vacation). Forgetting this is one of the most common freelance rate mistakes — working 52 weeks is unrealistic and leads to burnout.