FREELANCE BASICS · 6 MIN READ
How to set a freelance rate without undercharging
A sustainable rate needs to cover more than the hours you spend delivering a project. You also need to account for business expenses, time spent finding clients, administration, leave, and quieter periods.
1. Start with your income goal
Decide how much income you want to earn over a year. Add a realistic estimate of business expenses such as software, equipment, insurance, accounting, and payment processing fees.
2. Estimate billable hours honestly
Not every working hour can be invoiced. Proposals, meetings, learning, bookkeeping, and marketing all take time. Estimate the number of hours you can reasonably bill in a typical week, then account for holidays and time away.
3. Build in a tax reserve
Tax obligations depend on where you live and how your business is structured. Use a planning estimate and check local guidance or a qualified professional for your actual obligations.
4. Review your rate regularly
Compare estimates with actual project time and costs. If work repeatedly takes longer than expected, revisit your scope, process, or pricing.
Try the Freelance Rate Calculator →
CLIENT WORK · 5 MIN READ
What every professional invoice should include
A clear invoice makes it easier for a client to understand what they are paying for and how to pay you. Requirements vary by country, so treat this as a general checklist rather than legal or tax advice.
Include the essentials
- Your business name and appropriate contact details.
- The client's name or business details.
- A unique invoice number and issue date.
- A clear description of each product or service.
- Quantities, rates, subtotals, applicable taxes, discounts, and the total due.
- Payment due date, accepted payment methods, and payment terms.
Make it easy to process
Use readable formatting, consistent numbering, and a currency that both parties understand. Agree on milestones and payment terms before work starts, and keep copies of invoices and payment records.
Create an invoice →
SMALL BUSINESS · 7 MIN READ
Revenue, profit, and margin: what is the difference?
Revenue is the money a project or business earns before costs. Profit is what remains after the costs included in your calculation. Profit margin expresses that profit as a percentage of revenue.
A simple example
If a project earns $2,000 and its included costs total $1,300, estimated profit is $700. Profit margin is $700 divided by $2,000, or 35%. This estimate can change when overhead, taxes, payment fees, or unexpected expenses are added.
Why margin matters
A project with a large price can still produce a small profit if it consumes a lot of time or requires expensive subcontractors. Compare both the absolute profit and the margin, and make sure your cost estimate includes the resources needed to deliver the work.
Calculate project profit →