Freelancer, how much and how to charge? What is your value?

After making a few mistakes, reading a few books and a lot of blogs out, I’ve finally been able to set a fair value for my time. And more important than knowing the time it takes you to do a job, is to know exactly the value of your skills/knowledge and the time of performance.

The full-time freelancer, homework, must calculate in his budget the time it takes to perform a task because it is through this time that we will find the base value of your time. How much do you need to have at the end of the month so you can pay your bill for light, telephone, transportation, water, grocery, housing and other expenses? How much will you have to pay taxes and taxes? Find out how much you need to earn to keep up with your spending so that in the end you can charge a fair value to you and your client.

Let’s assume you work 8 hours a day, Monday through Friday, that’s 5 days a week and 4 weeks a month, totaling 160 hours. By setting the time it takes you to run a particular service, you will discover its cost-base. But you have to make a profit, no one lives just to pay bills, does not it? The profit you will enter into the cost-base. And do not forget the fees.

Calculating the Job Price:

Calculating Cost-Base: Let’s assume you need $ 1,000 a month to pay your bills and you want to work only 8 hours a day, 5 days a week for four weeks (one month), then $ 1,000 / 160h = R $ 6.25 per hour to survive. Its base cost is $ 6.25 per hour. That is, you multiplying $ 6.25 for the 160 hours, the total will be 1,000.00. Here there are no fees or taxes, this is your base value.

Calculating Cost-Base + Profit: Profit must be at least 20% above your cost-base, this is usually for beginners and then increasing as you gain experience. Have a profit margin that brings quality of life. Using the same example above we will have: 20% of $ 1,000.00 is $ 200.00, so your profit will be $ 200.00. At the end you need to receive R $ 1,200 per month. These numbers are just an example, not to say that should be just that. Only you can set your value, okay?

Calculating Taxes / Taxes Over Final Value: Well, taxes and fees are calculated as a percentage of the gross price. It took me a while to understand how it works. Following again our example above, you will need to receive at least $ 1,200.00 to be able to withdraw all your accounts at the end of the month and make a profit, but we still have the taxes. Let’s assume that the taxes are 30%, you CAN NOT charge $ 1,200.00 otherwise you will receive $ 840.00, you have already been in the red. You also should NOT add 30% on top, in case you charge $ 1,560.00 (that would be $ 1,200.00 + 30%) or you’ll be red in the same way because the 30% will be charged over R $ 1,560.00 and in the end, you will receive $ 1,092.00. It’s well below what you’d have to win, right? So how to do this calculation?

If 100% is the cost of production and 30% is cost of the fees, then 100% – 30% = 70%. Our equation will be: R $ 1,200.00 ÷ 70 = 17.14 X 100 = R $ 1.714,28. VOILÁ! This is your final value and already with the rates.

Cost of the Hour + Profit + Tax / Tax = Total Final Amount you wish to receive

Okay, but in relation to experience? Does not count? If 3 years ago I took 16 hours to perform a task and today I only take 6 hours, then that calculation will generate a much lower value, right? In this case you can increase the value of your time, because you already have more experience in the area. Defining the degree of experience is a very delicate point. To help define this you need to seriously consider the following factors:

Experience Factor: How long do you perform a task, how many hours does it take you to complete a job today?
Customer: How much will it require of you, what services it will hire, what is the complexity of the job and the size of the company?
Creativity: You should analyze your degree of difficulty in solving problems and building an effective project.
These tips apply to designers in general, illustrators or translators or any other profession. Well, I hope it helped in some way. You can also get more information in the book “How Much Does It Cost My Design? Financial Management for Freelancers“. Very good, it was there to get organized and set my value. There are other formulas in other websites and blogs, however this was the best way I found to reach a value.

Source: ramosdainformatica, oficinadanet, how much does my design cost,

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8 Comments

  1. SHOW de bola isso ae nunca pensei nisso neste tipo de perspectiva. Muito inteligente você. Parabéns

  2. tenho feito trabalhos com desenhos (free lancer)sou autodidata sempre me perguntava quanto cobrar,acredito que agora terei um pouco menos de duvida.

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