Stop undercharging.
Calculate your true freelance hourly rate by factoring in unbillable hours, vacation time, and business expenses.
1 Income Goals & Expenses
2 Time & Availability
📚 Freelance Pricing Guide & Manual
1. The "Billable Efficiency" Trap
The #1 mistake new freelancers make is assuming they can bill for 40 hours a week. In reality, you spend massive amounts of time on admin, pitching, accounting, and answering emails. The global average for freelance billable efficiency is only 50% to 60%. If you don't account for this, you will effectively earn half of your target salary.
2. Tax & Compliance (GST & Income Tax)
As a sole trader, you are governed by the Income Tax Act 2007. This means you must manually pay your own income tax and ACC levies. Furthermore, under the Goods and Services Tax Act 1985, if you earn over $60,000 in a 12-month period, you are legally required to register for and charge GST (15%). Always keep 30-40% of your earnings in a separate bank account for tax time.
3. Daily Rates vs. Hourly Rates
Charging by the hour can penalize you for working fast. Many professionals shift to a "Day Rate" or "Project Rate". If a client books you for a day, they are buying your availability, even if the task takes 5 hours. Use the Daily Rate (8 hrs) calculation above as a baseline when quoting flat-fee projects.