If you’re just starting out, you may be wondering how to get started with setting a rate that’s not too low and not too high. Or, perhaps you’ve been working for a while but need to re-evaluate your existing rate.

Either way, determining what to charge people for your work can be a stressful decision. If you don’t charge enough, the work isn’t worth your while and you’re cheating yourself. If you charge too much, you may have a hard time landing clients (especially if you’re just starting out).

You love your work, and it’s important to get appropriately paid for it. Finding that sweet spot is key, and there are a few things you can do to make sure you hit it.

• Set a savings or salary goal. If you’re not freelancing full time, but want to make it a viable side hustle, start by setting a savings or salary goal. For example, maybe you started a separate bank account for your side hustle and you want to save $5,000 in six months. Or, you’d like to make $25,000 per year. Divide the goal you have by the number of hours you’d ideally like to work each year, which will give you an average hourly rate. Or, think about how many projects you’d like to complete, and how much you’d have to charge per project to get to that goal.
  
• Calculate your minimum amount to get by. If the ultimate goal is to freelance full time, you’ll need to do some additional math to determine how much your rate should be.
  
  First, add up all of your monthly payments, such as rent/mortgage, utilities, car loan, student loan, etc. Then, add how much you spend per month on other expenses such as groceries, entertainment, gas, etc. Include a monthly amount to put directly into savings or an emergency fund (experts suggest having 3-6 months of savings in an emergency fund). This is your minimum amount per month. Multiply by 12 to get your minimum annual income, and go from there.
  
• Do research. Search online how much other freelancers charge for their rate. Read about how they determined that rate. Find freelancers who do similar work to you so you have an equal comparison.
  
  Keep in mind they may be more experienced than you, and their rate reflects that, so starting out that may not be reasonable for you. But understanding what others in your field charge can give you a great place to start.
  
• Determine whether you’ll charge hourly or per-project. There are pros and cons to both, so include learning about this in your research to help you determine which may be right for you.
  
  Something I read to help is “Price the client, not the project, charging for your expertise rather than your time.” Only you know whether you’ll get the best return on your time by charging hourly or per project. Sometimes, it may depend on the client or the project. Be prepared with a rate for both.
  
  TIP: Regardless of how you charge, always track your time. By knowing how long projects take you, you’ll be better prepared to estimate how much to charge for future projects.
  
• Be flexible. You may find it helpful to have a range of rates you would accept for a job. Propose a rate that makes sense for the position and for the client. For example, you may propose a higher rate if it’s a large, national client who likely has a lot more money to spend on a contract compared to a small, local start up. Either way, don’t propose or bid lower than is worth your efforts. Whether you’re charging per hour, per word, or per project, have your average rate but also have a minimum you’d go if you have to negotiate.
  
• Negotiate. Stand up for yourself, and don’t be afraid to be negotiate if a client proposes a rate lower than what you’d ideally like. This is why it’s important to have a range of rates you’d accept. Personally, in most of my proposals I include a line like “I’m willing to negotiate a per-word or per-article rate,” leaving the door open to talking with the client instead of them turning me down right away because my rate is too high.
  
  A good relationship with a client is built on a solid foundation of communication and trust. Work with the client up front, especially if you are very interested in the client or project, to make sure you both benefit from the relationship.
  
  That being said, if a client won’t go above a certain rate, and it happens to be lower than your range, don’t be afraid to tell them you can’t accept that rate. Even turning down contracts can beneficial for both of you in the long run.

How did you determine how to set your rate? What do you charge? Do you have any tips for negotiating rate?

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