| name | freelance-rate-card |
| description | Calculates freelance rates based on expenses, desired income, and market positioning with rate card formatting. Use when setting or updating your freelance pricing. |
| allowed-tools | Read Write Glob |
| metadata | {"author":"matthewhitcham","version":"1.0"} |
Freelance Rate Card
When to Use This Skill
Use this skill when you need to:
- Calculate hourly, project, or retainer rates based on your income goals
- Create a professional rate card for client-facing use
- Evaluate whether your current rates support your financial goals
- Design a pricing structure with packages and tiers
DO NOT use this skill for employee salary negotiation, agency pricing, or product pricing strategy. This is specifically for freelancers and independent consultants.
Core Principle
YOUR RATE IS NOT YOUR HOURLY WAGE — IT MUST COVER TAXES, BENEFITS, OVERHEAD, NON-BILLABLE TIME, AND PROFIT MARGIN ON TOP OF YOUR DESIRED TAKE-HOME PAY.
Phase 1: Financial Inputs
Required Inputs
| Input | What to Ask | Default |
|---|
| Desired annual income | "What do you want to take home after taxes and expenses?" | No default — must be provided |
| Annual business expenses | "What are your yearly business costs? (software, insurance, equipment)" | $5,000 |
| Tax rate | "What is your estimated tax rate? (federal + state + self-employment)" | 30% |
| Benefits cost | "Annual cost for health insurance, retirement contributions?" | $8,000 |
| Billable hours per week | "How many hours per week can you bill to clients? (not total work hours)" | 25 hours |
| Weeks worked per year | "How many weeks do you work after vacation and holidays?" | 46 weeks |
| Service type | "What do you do? (design, writing, development, consulting, marketing)" | No default — must be provided |
GATE: Do not proceed without desired income and service type.
Phase 2: Rate Calculation
Hourly Rate Formula
## Rate Calculation
### Step 1: True Annual Need
| Component | Amount |
|-----------|--------|
| Desired take-home pay | $[X] |
| + Tax reserve (30%) | $[X] |
| + Business expenses | $[X] |
| + Benefits (health, retirement) | $[X] |
| + Profit margin (10-15%) | $[X] |
| **= Total annual revenue needed** | **$[X]** |
### Step 2: Available Billable Hours
| Component | Value |
|-----------|-------|
| Billable hours/week | [X] |
| x Weeks worked/year | [X] |
| **= Annual billable hours** | **[X]** |
### Step 3: Minimum Hourly Rate
| | |
|--|--|
| Total revenue needed | $[X] |
| / Billable hours | [X] |
| **= Minimum hourly rate** | **$[X]/hr** |
| Market-adjusted rate | **$[X]/hr** |
Rate Types
### Your Rate Options
| Rate Type | Amount | When to Use |
|-----------|--------|------------|
| Hourly rate | $[X]/hr | Small tasks, consulting calls, overflow work |
| Half-day rate (4 hrs) | $[X] | Workshops, intensive sessions |
| Full-day rate (8 hrs) | $[X] | On-site work, full-day engagements |
| Project rate | $[X]-$[X] | Defined scope deliverables |
| Monthly retainer | $[X]/mo | Ongoing client relationships |
### Project Rate Formula
Project rate = (Estimated hours x Hourly rate) x 1.2 complexity buffer
Phase 3: Rate Card Design
Client-Facing Rate Card
## [Your Name] — Rate Card [Year]
### Services & Pricing
**[Service Category 1]**
| Service | Starting At | Includes |
|---------|-----------|----------|
| [Service A] | $[X] | [Deliverables, timeline] |
| [Service B] | $[X] | [Deliverables, timeline] |
**[Service Category 2]**
| Service | Starting At | Includes |
|---------|-----------|----------|
| [Service C] | $[X] | [Deliverables, timeline] |
### Retainer Packages
| Package | Hours/Month | Rate | Monthly Investment |
|---------|------------|------|-------------------|
| [Starter] | [X] hrs | $[X]/hr | $[X]/mo |
| [Growth] | [X] hrs | $[X]/hr | $[X]/mo |
| [Partner] | [X] hrs | $[X]/hr | $[X]/mo |
Retainer clients receive [priority scheduling, rollover hours, reduced rate].
### Additional Details
- **Rush fee:** +[25-50]% for turnaround under [X] days
- **Revisions:** [X] rounds included; additional at $[X]/hr
- **Payment terms:** [50% upfront, 50% on delivery / Net 15]
- **Availability:** Booking [X] weeks out
Phase 4: Market Validation
Market Rate Comparison
## Market Positioning
| Level | Market Range | Your Position |
|-------|-------------|--------------|
| Entry-level | $[X]-$[X]/hr | |
| Mid-level | $[X]-$[X]/hr | |
| Senior/Expert | $[X]-$[X]/hr | |
| Premium/Specialist | $[X]+/hr | |
**Your rate:** $[X]/hr — positioned at [level]
### Positioning Notes
- If below market: opportunity to raise rates
- If at market: differentiate on quality, speed, or specialization
- If above market: ensure brand and portfolio justify premium
Example: Freelance Web Developer ($100K Take-Home Goal)
Calculation: $100K income + $30K taxes + $8K benefits + $5K expenses + $14.3K profit margin = $157,300 needed. At 25 billable hrs/week x 46 weeks = 1,150 billable hours. Minimum rate: $137/hr.
Rate card: Hourly $150/hr, half-day $550, full-day $1,000, website project $3,000-8,000, monthly retainer $2,400/mo (20 hrs at $120/hr retainer discount).
Anti-Patterns
- Using your employed salary to set freelance rates — employees get benefits, PTO, and equipment. Freelancers pay for all of that. Freelance rates must be 2-3x the hourly equivalent of a salary.
- Billing for every hour worked — admin, marketing, invoicing, and learning are non-billable. You work 40 hours but bill 25.
- Racing to the bottom — competing on price attracts price-sensitive clients who are the hardest to serve. Compete on value.
- No rush fee — urgent work displaces planned work. Charge a premium for it.
- Hourly-only pricing — project and retainer pricing captures more value and provides income predictability.
Recovery
- Rate is below minimum viable: Show the math. Either raise rates, reduce expenses, or increase billable hours. The numbers do not lie.
- Afraid to raise rates: Raise rates for new clients first. Existing clients get 60-90 days notice. Most will stay — the ones who leave were undervaluing you.
- No idea what market rates are: Research on freelance platforms, industry surveys, and peer conversations. Start at mid-market and adjust based on demand.
- Clients push back on rates: Value is the issue, not price. Improve your portfolio, add testimonials, or reframe pricing in terms of ROI to the client.
