- Start from the income you need, then add costs, tax and unpaid time.
- Research what the market pays and position yourself honestly.
- Agree scope and payment terms in writing before you start.
The Short Answer
Many freelancers charge too little because they guess. A better way is to work out what you need to earn, estimate your working hours, then check the market. Your price should cover your costs, taxes, rest and growth, not just the hours you sell.
Work Out Your Number
Add your monthly living costs, business costs such as data, equipment and software, tax and savings. Divide by the realistic number of billable hours you can work, which is usually fewer than you think because of admin and finding clients.
That figure is your minimum hourly rate. Charging below it means working at a loss.
Research the Market
Look at what comparable freelancers charge, on job platforms and among people you know in your field. Consider your experience, results and niche. Specialised skills can charge more than general ones.
Do not copy the lowest price. Compete on quality, reliability and clear communication.
Choose a Pricing Model
You can charge by the hour, by the project or by a monthly retainer. Hourly suits uncertain work, project pricing suits clear deliverables and retainers suit ongoing relationships.
Whichever you use, define the scope in writing, including revisions, deadlines and what costs extra.
Get Paid Properly
Ask for a deposit before starting, agree payment dates and send clear invoices. Be careful with discounts, since they can set a low expectation. Offer extra value instead when you want to reward a client.
Review your rates every few months and raise them as your skills and demand grow.
A Worked Example
Suppose you need 400,000 naira a month after covering your costs and tax, and you can bill 80 hours a month. Your minimum rate is 5,000 naira an hour. A project you expect to take 20 hours should be quoted at no less than 100,000 naira, plus extra for revisions and risk.
Adjust the numbers to your own situation, then compare with what clients pay for similar work.
Talking About Price With Clients
State your price calmly and explain what it includes. If a client says it is too high, offer a smaller scope instead of a bigger discount. Be ready to say no to work that pays too little.
Put the price, scope and payment terms in a written quote.
Raising Your Rates
Review your rates every three to six months. Raise them for new clients first and give existing clients notice. Use results, testimonials and your growing skills to justify the change.
Track which jobs pay best per hour and do more of them.
Action Checklist
- Calculate your minimum monthly income and billable hours
- Research what similar freelancers charge
- Choose hourly, project or retainer pricing
- Write the scope, revisions and deadlines
- Take a deposit before you start
- Review and raise your rates regularly
