Three factors to consider:
Obviously, you should not charge lower than #3. If do your research and you're sales-savvy you can get away with #1. If not, then you will have to settle with charging a figure that corresponds to #2.
answered Apr 19 '10 at 10:37
Target monthly income / 160 = Hourly rate
(Hourly rate * Number of hours the project requires) + Extra expenses = Project rate
answered Apr 20 '10 at 07:53
For consulting rate, I follow this formula:
rate, $/hour = (current annual salary x 1.3) / 2000, rounded to the nearest $5 increment where 2,000 is approximate number of hours worked in a year
Now for a shameless plug, I have a short blog post on dollarizing your time here http://gregmoreno.ca/dollarize-your-time/
answered Apr 20 '10 at 22:40
You are not a pro (meaning you don't have much experience) but what is your speed or how long do you work projects or tasks?
I have worked with 20 year-olds who work faster than those who are more experienced. And yes, they charge higher! Gifted kids.
Have you tried ODesk? I have been working via ODesk and you get nearly exactly what you deserve there :D Overtimes are paid but usually the time it takes for you to "think" or reflect on how you're going to solve a problem isn't. Review time isn't paid depending on client expectations.
Try psychological costing. I am financial management grad (with 7 years experience in web development) but I don't believe in conventions and most of their advice on pricing. It is not what you incur due to the project but what you expect to get from it based on your confidence and quality of your work.
For me, it's this simple:
Your hourly rate = Your budgeted income (expected income) from that project for the month/week divide by no. maximum no. hours devoted to that project per month/week
Which is the same as the answer above - targeted monthly income/ hours.
If I'd follow Greg's formula, I'd get a frustrating result. For consulting and ODesk projects, it's the result from Greg's formula * 2 :D
Usually 40-60k per month for working on a software or web service from scratch. It can go cheaper though, especially if we are just talking about static websites. This is as per candidates that I've interviewed who do freelance. :)
answered May 06 '10 at 01:53