The most common pricing error is treating every working hour as billable. A €30,000 salary divided by 2,000 hours suggests €15 per hour—but that calculation ignores how a freelance business actually works.
The false calculation
Employees are paid during meetings, administration, training, holidays and many other non-client tasks. Freelancers must fund those hours from the work they can invoice.
Build the real break-even rate
Start with the annual income you need, then add business costs and the value of benefits you now fund yourself. Divide that total by realistic billable hours—not all available hours.
- Target personal income
- Tax and social-contribution buffer
- Software, equipment and professional services
- Holiday, sick time and unpaid administration
- Sales, proposals and client communication
Why the minimum rises
If only 1,200 hours are billable, €30,000 divided by 1,200 already equals €25 per hour before business costs. Adding roughly 30% for costs and risk raises break-even to about €32.50. A sustainable market rate can therefore be €40–€50 per hour or more, depending on skill and demand.
Price value as you mature
Hourly pricing is a useful safety floor. Once you understand outcomes and scope, project or value-based pricing can separate revenue from time.