How to Calculate Your Technical Hour
Calculating your technical hourly rate is essential for freelancers who want to ensure financial sustainability and professional growth. The calculation should consider not only your annual income goal, but also operational costs, vacation, taxes, and the actual billable time. To find the ideal rate, estimate how many hours per day you can realistically bill, how many days per week you plan to work, and how many weeks of vacation you will take throughout the year. Add up all your monthly costs (internet, software, coworking, equipment) and multiply by 12 to get the annual cost. Add this to your income goal and divide by the total billable hours in the year. This way, you arrive at a realistic technical hourly rate that covers your expenses and allows you to reach your goals.
Why Charge Per Project vs Per Hour?
Charging by the hour is transparent and easy to justify, but it can limit your earning potential, especially if you are efficient or deliver more value in less time. Project-based pricing allows you to charge for the value delivered to the client, not just the time invested. Well-defined projects with a clear scope are ideal for fixed pricing, while uncertain or recurring demands may be better served by hourly contracts. The key is to understand the client's profile, project risk, and your own productivity to choose the most advantageous model.
Hidden Factors in Freelancing
Many freelancers underestimate factors such as non-billable time (prospecting, meetings, learning), taxes, client default, and unexpected costs. In addition, periods without projects, seasonality, and investments in marketing or training should be considered in your hourly calculation. Ignoring these elements can lead to underpricing, compromising your business's financial health. Therefore, review your numbers periodically and adjust your pricing strategy as the market and your experience evolve.