Most new freelancers set their rates by doing one of two things: looking at what other designers charge and going lower to be "competitive," or picking a number that feels like enough to not be embarrassing. Both approaches leave a lot of money on the table — and in the case of the first, often put you in a race you cannot win.
Here is a more systematic approach to pricing that starts from what you actually need to earn, factors in the work you will not bill for, and gives you a defensible number you can say out loud without flinching.
Why most freelancers undercharge — and the trap it creates
Undercharging feels safe. A lower number is easier to justify, easier for clients to say yes to, and removes the anxiety of someone saying "that's too expensive." The problem is that low rates attract clients who are price-sensitive by nature — clients who negotiate harder, ask for more, pay late, and leave if they find someone cheaper. These are the worst clients to have.
Low rates also create a workload trap. If you charge €500 for a project that takes you 40 hours, you are earning €12.50/hour before tax. To reach a liveable income, you need to take on more projects than you can handle — which means rushing work, dropping quality, burning out, and never having time to develop the skills that would let you raise your rates.
Higher rates filter for better clients. Clients who pay €3,000 for a website take it seriously, provide content on time, respect your process, and give you the space to do good work. They also tell other clients like them about you.
Three pricing models: when to use each
Hourly pricing
You charge a set rate for every hour worked and invoice based on time tracked. The advantage is simplicity and full coverage of scope creep — if a client asks for more, you just log the time. The disadvantage is that as you get better and faster, you earn less for the same output. It also transfers all financial risk to the client, which makes large projects harder to sell. Best for: ongoing maintenance retainers, consulting, small changes, work where scope cannot be defined upfront.
Project-based pricing
You quote a fixed price for a defined scope of work. The client gets certainty. You get rewarded for efficiency — if the project takes 20 hours instead of 30, your effective rate rises. The risk is scope creep eating your margin, which is why a clear written scope is essential. Best for: new builds, redesigns, defined campaigns — any project where the deliverables can be described clearly in a proposal.
Value-based pricing
You price based on the value the project delivers to the client, not the hours you spend. A local business website that generates 10 enquiries per month is worth far more than the 30 hours it took to build. The challenge is that value-based pricing requires understanding the client's business deeply enough to estimate ROI — and the confidence to name a high number. Best for: experienced freelancers, clients with clearly quantifiable goals, projects with measurable outcomes. The website ROI calculator can help you build that case with clients.
For most new freelancers: use project-based pricing for builds, hourly for ongoing work. Add value-based framing to your proposals once you have a few case studies.
How to calculate your minimum viable rate
Start here before you look at what anyone else charges. This is the number below which you cannot build a sustainable freelance business.
- Target monthly take-home income. What do you need to pay rent, food, taxes, and have a small buffer? Call this X.
- Add taxes and self-employment costs. Multiply X by 1.3–1.5 depending on your tax rate and country. This is your required gross monthly revenue.
- Estimate billable hours per month. A full-time freelancer has roughly 160 hours per month. But not all of those are billable. Admin, sales calls, proposals, invoicing, learning, and marketing typically eat 30–40%. So your actual billable time is closer to 90–110 hours per month.
- Divide revenue by billable hours. That is your minimum hourly rate. For project pricing, estimate how many hours each project type takes and multiply.
Run this calculation honestly. If your number comes out at €45–€60/hour, do not look at other designers quoting €20/hour and decide you need to match them. They are either not making a living, subsidising with other income, or in a lower cost-of-living market. Your rate is your rate.
Market rate benchmarks by experience and service type
These are rough ranges for the European/UK market. Adjust for your specific location, niche, and positioning.
- Beginner (0–2 years): €500–€2,000 per small business site. Hourly equivalent: €20–€40.
- Mid-level (2–5 years): €2,000–€5,000 per project. Hourly equivalent: €45–€75.
- Experienced specialist (5+ years): €4,000–€12,000+ per project. Hourly equivalent: €75–€150+.
- SEO audits and strategy: €500–€2,500 depending on site size and deliverables.
- Monthly maintenance retainers: €150–€600/month depending on scope.
For context on what clients expect to pay, see the web designer cost guide — it is written for clients but gives you a useful external calibration of what the market considers normal at each tier.
How to present pricing without flinching
The way you say the number matters as much as the number itself. Hesitation, over-explanation, and apologetic framing signal that you do not believe the price is fair. Clients pick up on this and either negotiate or walk away.
State the price clearly, then stop talking. "The project investment is €3,200." Full stop. Do not immediately follow it with "but I can do it cheaper if..." or "I know that might be more than you were expecting." Give the client a moment to respond before you start managing their reaction.
If they push back, ask questions rather than reducing your price. "What range were you expecting?" or "What part of the scope could we adjust to fit your budget?" This keeps you in control and often reveals that the client's real objection is uncertainty about value, not price — which you can address without discounting.
Packages vs. custom quotes
Packages — three fixed tiers with defined deliverables and prices — work well for new freelancers for two reasons. First, they remove the awkward "what's your budget?" conversation. Second, they anchor the client's thinking around your offering rather than a competitor's quote. The classic structure: a starter tier (basic site, limited pages), a main tier (the project you actually want to do), and a premium tier (the same with add-ons). Most clients pick the middle.
Custom quotes work better as you become more experienced and can confidently scope projects on the fly. They let you price based on the specific complexity and value of each project rather than fitting everything into a template.
When and how to raise your rates
Raise new-client rates whenever you like — there is no announcement required and no client ever compares your old proposals to your current ones. If you have been fully booked for two consecutive months, raise your rates by 20–30%. You should be turning some new enquiries away; if you are not, you are probably undercharging.
For existing clients, give 30–60 days notice: "I review my rates annually. From [date], my rate will be [amount]. I wanted to flag this well in advance." This is normal, professional, and expected. Good clients accept it. If a long-term client refuses any increase after a year or more, that is information about how much they value the relationship.
Red flags that a client will be difficult about pricing
- They lead with budget before understanding what they need.
- They mention the last designer was "too expensive" — especially if the number they give is reasonable.
- They want a quote "just to compare" but cannot articulate what they are comparing against.
- They ask for discounts before you have even sent a proposal.
- They reference what Wix or Squarespace costs as a comparison point.
None of these automatically disqualify a client. But they are signals to scope tightly, get a deposit before starting, and make sure your contract covers revision rounds and payment terms clearly. Read the client management guide for how to handle these situations before they become problems.
Working out your positioning and pricing strategy? Get in touch — happy to share what has worked in practice.
Get in touch →