Setting Your Freelance Hourly Rate: Earn More the Smart Way

Setting your hourly rate for freelancing services comes down to three things: knowing your market, charging your worth, and raising rates with confidence.

Freelancers in the US average about $48 an hour, but skilled pros in areas like marketing, copywriting, and AI easily charge $100+. Raise your rates when demand is high, your skills improve, or it’s been a year since your last increase and tell your clients about the increase upfront, with confidence.

What Freelancers Actually Earn per Hour 

Freelance rates vary widely, and there’s no universal number that works for everyone. What you earn depends on what you do, where your clients are, and the specific problems you solve for them. As of 2025, the average US freelancer earns $47.71 per hour, but that number alone doesn’t tell the full story. At the 25th percentile, freelancers average around $24 per hour, while at the 75th percentile, rates rise to about $62. That spread shows how much niche, experience, and positioning matter.

Here’s what that looks like across a few key fields:

• Copywriters: $50–$125/hour. Beginners typically start around $50, but experienced writers with measurable client results often charge $100–$150 or more.
• Graphic designers: $45–$90/hour. Those with specialized experience, such as branding for tech startups or financial firms, tend to land on the higher end of the range.
• Digital marketers: $75–$150/hour. SEO experts, paid ads specialists, and email strategists with proven ROI can easily exceed $100 an hour.
• Video editors: $50–$100/hour. Editors focused on YouTube channels, high-converting sales videos, or corporate content can command premium rates for high quality and turnaround speed.

These averages are only a baseline. On platforms like Upwork, experienced freelancers often earn $100 per hour or more, and top specialists with strong reputations sometimes charge upwards of $250. The clearer your niche and the stronger your results, the more freedom you have to raise your rates confidently.

How to Set Your Freelance Hourly Rate (Without Underselling Yourself)

Most freelancers get pricing wrong, either undercharging out of fear or overcharging without proof. The right rate balances market standards, your value, and the cost of the life you want:

1. Start by researching what other freelancers in your niche actually charge

Before picking a number, you need to understand the market you’re stepping into. Look at what freelancers with similar skills and experience are charging on platforms like Upwork or Contra. Browse profiles, check job posts, and read client reviews to see what kinds of projects command higher rates.

If possible, talk directly with other freelancers in your space; most are open to sharing their general range. Your goal isn’t to copy someone else’s price but to anchor yourself in reality, and it’s easier to price confidently when you know what “normal” looks like in your field.

2. Don't lowball yourself just to win clients

Cutting your rates might seem like the easiest way to land clients, but it often attracts the wrong ones instead. Low-paying clients tend to expect more revisions, longer hours, and faster turnarounds for less money. They’re focused on getting a bargain, not paying a fair price for quality work.

Once you start low, it’s also tough to raise your prices later because you’ve set a precedent. Charging below market rate doesn’t make you more appealing. In fact, it signals to your clients that you’re inexperienced or unsure of your value. If similar professionals are earning $75–$100 an hour and you’re charging $30, that’s not strategy; that’s underselling yourself.

3. Set a floor rate you'll never go below, then test higher with new clients

Every freelancer should know their walk-away number: the minimum they’ll accept for their time. That number depends on your expenses, goals, and the kind of projects you want to take on. Once you’ve established that floor, stick to it. Then, as you take on new clients, gradually test higher rates.

Increase your price by 10–20% and pay attention to how clients respond. You’ll often find that the difference between a $75 client and a $100 client is perception, not resistance; clients say yes at higher rates than you might expect. If most people accept your quote without hesitation, that’s a sign your rate is still too low.

4. Factor in your actual expenses, taxes, and the life you're building

Your freelance rate should sustain more than your basic bills. Think beyond rent and groceries: include software subscriptions, health insurance, savings goals, and taxes, which can easily take up 25–30% of your income. Once you’ve calculated your monthly needs, consider the life you’re building toward including vacations, investments, or future financial goals and divide by how many billable hours you realistically work each month.

For example, if you want to take home $5,000 per month after taxes and plan to work about 80 billable hours, you’ll need to charge around $60–$70 per hour before accounting for profit. That’s the baseline for maintaining your desired lifestyle, not the maximum you can earn.

When You Should Raise Your Freelance Rates (4 Clear Signs)

Many freelancers keep prices flat for too long out of fear of losing clients, but if no one ever pushes back on your rates, that’s a clear sign you’re undercharging. Here are signs you should raise your freelance rates:

1. You've worked with a client for 6+ months and consistently delivered results

Once you’ve been consistently delivering strong results for a client for half a year or longer, your value has increased, whether or not your rate has. You now understand your client’s business, audience, and processes better than you did in the beginning, which allows you to produce higher-quality work faster. That efficiency alone is worth more. Treat rate increases like a standard business practice, not a favor you’re asking for.

2. Your calendar stays booked or you're regularly turning down work 

If you’re constantly juggling projects or saying no to new clients, that’s a clear sign you’re underpriced. High demand is one of the best indicators it’s time to raise your rates. Even a modest increase of 10–15% can help balance your workload while boosting your income. The moment you notice that new clients rarely push back on price, it’s time to test higher numbers.

3. You've significantly upgraded your skills or expanded your services

Every time you level up your skills, whether that’s learning new software, mastering AI tools, or getting certified in a new specialty, your rates should reflect that growth. Clients aren’t just paying for your hours; they’re paying for the problems you can now solve more efficiently and strategically. If you’re offering more value, it’s only fair that your pricing matches it.

4. Your rates haven't changed in over a year despite inflation or market shifts

Inflation affects freelancers just like everyone else. As your living and business expenses increase, your rates should too. Building in an annual 3–5% adjustment keeps your income aligned with the cost of living and helps normalize rate changes so they never feel awkward or abrupt. It’s not a money grab; it’s good business.

How to Raise Your Rates Without Losing Clients

Raising rates feels scary, but losing money by staying cheap costs you more. The key is to give notice, offer context, and communicate your value clearly so the increase feels logical rather than surprising.

1. Give existing clients one to two months' notice, with context

Always give your current clients advance notice before a rate change, ideally at least one to two months. Clients respect transparency, so be professional but direct: Explain that your rates are increasing, share the date it takes effect, and briefly mention why, whether that’s expanded skills, increased demand, or higher business costs.

A short message such as, “Starting March 1, my standard rate will be $XX for new projects. I wanted to give you notice since we’ve worked together closely,” keeps the tone confident and courteous without over-explaining.

2. Show concrete results and tie your increase to the value you deliver

When clients can see measurable results from your work, price becomes less of a sticking point. Before announcing an increase, take a moment to document wins like conversions, revenue growth, or improved engagement. For example, instead of saying, "I need to charge more," say, "Since we started working together, I've helped you increase conversions by 40% and generate an additional $50K in revenue. My new rate reflects the strategic value I bring to your business." Presenting ROI outcomes alongside your new rate reinforces that you’re not simply charging more; you’re reflecting the tangible value you’ve already created for them.

3. Offer options for clients who genuinely can't afford the increase

Some clients may not be able to meet your new rate right away, and that’s okay. You can offer alternatives such as a phased increase over three to six months, reduced project scopes at the old rate, or retainer packages with adjusted pricing. This flexibility shows you value the relationship while maintaining your boundaries. A few clients may decide to move on, but that simply opens space for higher-paying projects that align better with your goals.

Living Your Rich Life Means Charging What You're Actually Worth

Your freelance rate is a statement about how much you value your time and expertise. Too many freelancers stay underpaid because they’re afraid to raise their prices, leaving tens of thousands of dollars behind over the course of their careers. When you take the time to understand your market, track your results, and adjust your pricing regularly, you can stop guessing and start running your business with intention.

The freelancers who thrive are the ones who treat pricing as a skill, not a guessing game. They review their rates often, communicate confidently, and walk away from clients who don’t respect their value. When you start seeing your work as a professional service instead of a favor, everything changes. When you charge what you’re worth, freelancing can fund the Rich Life you actually deserve, not just the one you can barely afford.