Figuring out how much to charge as a freelancer can be a real challenge when you’re just getting started. This process isn’t just about coming up with a fair price for your services, but ensuring you cover your costs and earn a profit. And above all, it’s about valuing your time and effort.

That’s why, in the following paragraphs, you’ll discover how to set your prices strategically. You’ll need to consider your expenses, available hours, and the value you provide to your clients. We’ll also discuss various pricing strategies so you can choose the one that suits you best.

How Much to Charge as a Freelancer? A Guide to Calculating Your Rates

Freelance Calculator: How to Figure Out What to Charge per Project

To determine how much to charge as a freelancer, it’s important to factor in your expenses, how many hours you have available, and the profit margin you want. That way, you’ll make sure you cover your costs and set competitive, sustainable rates.

Below, we explain in more detail:

Calculate Expenses and Costs

It’s crucial to identify all your monthly expenses, both personal and professional. It doesn’t matter how big or small they are; you need to include every outlay. This will be your starting point for deciding how much to charge for a service in a fair manner.

These outlays include:

• Personal: Rent or mortgage, food, transportation, basic services (water, electricity, gas, internet).

• Professional: From tech equipment (laptop, software) and marketing to freelance taxes. Also social security payments or accounting services.

Let’s say your total monthly expenses are 35,000 MXN, including savings for emergencies.

To calculate your annual costs, just multiply these expenses by 12 months of the year:

35,000 MXN x 12 months = 420,000 MXN.

That total represents the yearly cost you need to cover all expenses and ensure your freelance career is sustainable.

Calculate Days and Work Hours

Next, define how many days and hours you can effectively work.

Let’s look at an example using a one-month basis:

• Days available to work per month: In a 30-day period, if you work Monday through Friday, you have 20 working days (leaving weekends off).

Formula: total days in the month - weekends = working days.

30 days - 8 weekend days = 20 working days in a month.

• Work hours per day: Although the standard working day is 8 hours, as a freelancer you will have other tasks to attend to. For example, you may spend time prospecting for clients, answering emails or invoicing.

If you estimate that 80% of your time will be productive, then you work:

8 hours x 80% = 6.4 hours per day.

• Monthly available hours: Multiply working days by productive hours per day:

20 days x 6.4 hours/day = 128 monthly hours.

Figure Out a Minimum Rate

Lastly, you’ll want to calculate a minimum amount that’s competitive. This is basically an estimate of the lowest price you can accept per project.

How do you know how much to charge per hour?

Use the following formula:

((Living expenses + Business expenses + Profit margin) / Monthly work hours)) + VAT.

This formula helps you figure out how much to charge for a service that covers your expenses while being profitable.

Here’s an example:

• Living expenses and business expenses: Estimated at 35,000 MXN per month.

• Profit margin: Suppose 25% profit on costs, which amounts to 35,000 MXN x 25% = 8,750 MXN.

• Total monthly cost: Add both amounts: 35,000 MXN + 8,750 MXN = 43,750 MXN.

• Monthly work hours: 128 available hours.

• Hourly rate without VAT: 43,750 MXN (total monthly cost) / 128 (hours worked) = 341.80 MXN/hour.

• Add VAT (16%): 341.80 MXN x 16% = 54.69 MXN.

Add them to get the final minimum rate:

((35,000 + 10,000 + 8,750) / 128) + 16% = 396.49 MXN/hour

You could also use a freelance calculator so the process is faster.

How Much Does a Freelancer Charge? Service Rates

How much does a freelancer in Mexico charge for services?

Freelance rates vary depending on the sector, experience and type of project. As does the online platform for freelance work you choose.

Below are some approximate references for common services:

• Graphic Design: A freelance designer’s average monthly salary is $8,075, which is about $47.5 per hour, according to Jooble.

• Writing and Copywriting: A copywriter is estimated to earn between $12,667 and $15,771 per month, depending on experience.

• Web Development: The range can be around $61 to $80 per hour, with Glassdoor suggesting an average of $16,000 monthly.

• Digital Marketing: The monthly income is about $20,000.

• Photography: The monthly average for someone independent in this field also varies. For instance, a photo/video maker editor might earn around $10,000 monthly.

These ranges are general references based on the freelance market trends in Mexico or from sites like Glassdoor.

How to Price Your Freelance Services

Although it’s important to know how much a freelancer charges per hour, that might not always be the best strategy. There are other methods that could be more effective and attractive for both you and your clients:

Hourly/Daily Rate

While charging hourly allows for precise tracking of tasks completed, it can be unfair since it doesn’t reflect the real value of your experience. For instance, if something only takes you 10 minutes, that time doesn’t represent the years of knowledge accumulated.

Charging per day can be a more suitable option if you’re landing freelance work. It also gives you more flexibility to adjust your rates according to a project’s scope.

Project Rate

One of the most popular strategies among independents is charging per project, focusing on the value you offer the client

The fixed price is based on the benefits you bring, not how many hours you invest. It’s ideal to guarantee the client that the agreed-upon work will be done at a previously agreed rate.

Retainer Agreement

With this method, both the client and the freelancer benefit from job stability. A retainer means securing a set amount of work for a fixed period of time, guaranteeing steady income that can be weekly or monthly.

This approach enables you to plan your weeks more effectively, boost productivity, and offer a more personalized and predictable service to the client.

Tips for Calculating Your Prices as a Freelancer

Setting how much to charge for a service requires strategy and confidence. Here are some suggestions to help:

• Study the market.

• Adjust rates by client type and what’s best for you.

• If you lower the price, reduce the deliverables to keep balance.

• Swap experiences with other pros in your industry to better understand market pricing.

• Overtime has a value you must reflect in your rate.

• Adapt your fees as your skills grow and the quality of your work increases.

• To ensure commitment and avoid risk in fixed-price projects, ask for an upfront deposit.

• Add in a profit margin that lets you cover costs, save, and invest.

• Even if cheaper options exist, trust that your work is worth every peso.

Many professionals fall into the trap of charging less in the hope of getting more work. But it’s essential to learn how to value your time and effort so you can thrive when deciding what to charge.

Research, training, and support from fellow freelancers can help you develop a solid pricing plan. Most importantly, recognize the true worth of your work—then your earnings and freelance career will benefit.

Ultimately, we recommend using our app to collect payments on Fiverr or any other website dedicated to freelance work.

With DolarApp, you can let clients pay you in digital dollars. It’s a way to save in a strong currency and make international payments simpler.

Plus, the exchange rate you’ll get when moving from USDc to pesos is very competitive.