/ Business
How do I work out my hourly rate?
Take your target annual income plus overheads, divide by realistic billable hours — usually 1,000–1,200 a year, not 2,000.
/ 01
The short version
The reason freelancers underprice is assuming every working hour is billable.
/ 02
What actually matters
- • Target income plus overheads plus tax provision.
- • Realistic billable hours: 20–25 a week at most.
- • Add holiday, sick time and admin as unpaid.
- • Compare against market rates for sanity.
- • Review annually, upwards.
/ 03
The bit most people get wrong
Admin, quoting, marketing and chasing invoices are all unbilled. Half your week is business, not client work.
/ 04
What to do next
Recalculate your rate using 1,100 billable hours a year and see how it compares to what you charge.
/ 05
Where RIOT fits in
We're a small Colchester studio helping UK SMBs get rate setting right without agency waste or freelancer flake. If you've read this far and you want a second opinion on your specific setup, book a 20-minute call and we'll tell you honestly whether it's worth doing anything at all.
We work with clients across Essex, Suffolk, London and the wider UK — and remotely with brands abroad. No lock-in, no monthly retainer minimums, no pretending your problem is bigger than it is.
/ FAQs
Common questions
Should I charge hourly or fixed?
Fixed price protects your margin if you're efficient.
How do I raise rates with existing clients?
Give 60 days' notice and a reason.
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