Freelance Pricing

How it works

Monthly = hourly × hours/day × days/week × 4.33 × utilisation%. The trick is utilisation. A full-time freelancer has ~168 working hours a month (8 × 21 days), but client work fills only 50–70% of that — the rest goes to sales calls, invoicing, learning, marketing, and gaps between contracts. New freelancers often quote like 100% utilisation and earn less than their old salary.

Worked example

A Bengaluru full-stack developer leaves a ₹25L/yr job (₹2.08L/month). To match it at 60% utilisation × 168 hrs = 100 billable hrs/month, they need ₹2,080/hour. To net the same after tax, add 30% for GST on services (₹2,704/hr) and another 10% for the lost EPF + gratuity + leave — true breakeven hourly is closer to ₹3,000/hr. Most Indian freelancers under-charge by 40-50%.

When to use this

• Setting your first freelance rate after leaving a salaried job
• Quoting a fixed-price project — back-solve hours × rate
• Deciding whether a US-client $40/hr offer beats your Indian rate (yes, almost always)
• Annual rate review — most freelancers should raise rates 10-15% yearly

Freelancers earning over ₹20L gross also need to register for GST (18% on services). Track input tax credit with the GST ITC tracker.