Mastering Your Freelance Invoicing: A Guide to Setting Your Rates

Many freelancers fall into the common trap of converting a traditional employee's monthly salary into an hourly wage, but this simplistic approach may leave out crucial aspects of freelancing. Axel Schad, a sustainability strategist at Freelance Finance, emphasizes the importance of considering more than just the hours worked when invoicing clients. Freelancers must account for various expenses, including insurance, pensions, vacation time, and administrative tasks. A reliable method for estimating your invoice amount involves taking an average monthly salary in your professional category, calculating the hourly wage, and then doubling it. This strategy helps ensure that your invoice reflects not only your working hours but also the additional costs you bear as a freelancer. "Using objective sources such as salary statistics from SCB or recommendations from trade unions is crucial when setting your price. This gives you a benchmark to work from," says Schad. Depending on your experience level and skill specialization, you can adjust your rates accordingly. New freelancers might consider pricing their services slightly lower to attract clients, while those with extensive experience or niche expertise may justify higher prices. To facilitate this process, Freelance Finance offers a salary calculator on its website where freelancers can determine how much they need to invoice to reach their desired income. Additionally, seeking help to access relevant statistics or using professional contacts for advice can be very beneficial. For those who have been freelancing for a while, regular assessment of your pricing is essential. If you've gained new skills or developed your expertise, it's likely time to increase your rates. External factors, like inflation, also necessitate adjustments to your compensation. However, Axel urges freelancers to set a personal benchmark for what they consider an acceptable price. Underpricing can not only devalue personal worth but can also contribute to broader price lowering in the market. It's important to acknowledge that circumstances may arise where it makes sense to lower your prices, such as for longer-term projects that provide job stability and reduce administrative workload. The key is to maintain a comprehensive view of the scenario to ensure you're valuing your time appropriately. Remember, the amount you charge ultimately determines your salary and reflects the value you deliver to your clients. Stand firm in your worth; you deserve to earn a reasonable income from your work. Related Sources: • Source 1 • Source 2