What should I charge? A pricing formula that works

Pricing is the fastest way to change your income — and the thing most freelancers get wrong. Charge too little and you work yourself into the ground for scraps; too much without justification and you lose the work. Here is a simple framework.

First, know your numbers. Work out your true costs (software, equipment, time) and the profit margin you need to live and grow. A common error is confusing margin with markup: a 50% markup is only a 33% margin. Our Profit & Margin Calculator keeps these straight and shows the exact price to hit your target margin.

Second, know your break-even. How many days or projects must you sell each month just to cover costs? The Break-Even Calculator answers this in seconds, so every price you set is above the line, not below it.

Third, present price with confidence. Offer three tiers where you can — most clients pick the middle, and the premium option anchors the value. Our Proposal & Pitch Template has a three-tier pricing table built in. Price is a decision, not a guess — make it with the numbers in front of you.