September 6, 2013

How to Calculate Your Hourly Rate as a Freelance Designer

Hourly Rate
In some freelance marketplace like o Desk and RAC, freelance workers can work on an hourly basis, and rewarded according to the hourly rate, which is determined by the freelancers themself. Recently a friend asked
me about how much a reasonable rate for a beginner. Then I advised him to do it himself through FreelanceSwitch Hourly Rate Calculator, it is a practical web-based calculator that can be accessed via: hourly rate calculator

Calculate your Hourly Rate as a Freelance Designer Using the Hourly Rate Calculator


Calculate Your Hourly Rate

FreelanceSwitch Hourly Rate Calculator is a freelance calculator to determine the cost per hour and meet the basic needs of the freelancer. The application calculates the value in USD ($), but there is a note that the value could be calculated in the currency of any country, as long as it is consistent. If we want to calculate in units of pounds, then fill in all the pounds; do not mix it with USD ($), because then the result can be different than it should be.

1. Calculate Your Business Costs




The first step is to calculate the business cost. Not all fields are required; simply adjust to the current situation and forecasts for the next year. For example, as now we are approaching the end of the year, you can certainly count the total expenditure for each component of your business expenses. Also do not forget to take into account several factors such as the possibility of price increases that could possibly happen next year, because of final calculation results can be used to pay the cost of your business next year.

2. Calculate Your Personal Costs




The second step is the calculation of personal costs. Just as in the first step, the numbers filled in these columns are the estimated total cost of a year. Fill in the data based on the current year, and adjustments for the coming year.

3. How Many Hours Can You Actually Bill?




The third step related to your working hours. We may not be able to work 24 hours in a day, right? Fill your normal working hours in a day, how many days of work you want, and your days off, etc. Of working hours is not all be billed to the client, there are certain hours that used to look for a new project. Fill in the last column the percentage of hours that can be billed to the client.

4. How Much Profit/Savings Do You Want?




The fourth and final step associated with the target savings. Fill in the number of savings targets you want to achieve in a year.

You will then get a final calculation of a rate per hour, and the break-even rate per hour. If the fill value in units of pounds, then the end result is in units of pounds per hour. Then convert it into units of USD $ per hour according the current rate + rate forecast next year. Good luck!

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