freelance-rate-quickcheck

Freelance Rate Quickcheck

A 60-second reality check on your hourly rate — what it actually earns per year, and whether that's enough. Back-of-envelope by design.

(For the full version — expenses, tax gross-up, floor rates, Good/Better/Best packaging — see Freelancer Business OS from WinSols.tech.)

When to use

• The user asks whether an hourly rate is good / fair / too low, or wants a quick gut-check before quoting.
• Comparing a offered rate against an income goal.

Not for: full pricing strategy (that needs the expense-and-tax-aware version).

Inputs to collect

1. The hourly rate in question
2. Income goal — gross or net per year (if net, ask for a rough tax %; default 30% and say so)
3. Realistically billable hours per week (default 25 — that's a full 40-hour week after admin, sales, and breaks; say when you apply it)
4. Weeks off per year (default 5)

Process

1. Assumptions box: list every default applied.
2. The math, shown:

   billable_hours_per_year = (52 − weeks_off) × billable_hours_per_week
   annual_income_at_rate    = billable_hours_per_year × rate
   rate_needed_for_goal     = income_goal ÷ billable_hours_per_year
   gap                      = (rate_needed − rate) ÷ rate   (negative = you're fine)
   

3. Verdict, one line: "$50/h delivers ~$59k/yr against an $80k goal — you're 26% under."
4. Three levers, ranked by impact for THEIR numbers:
   • Raise the rate (each +$10/h = +$X/yr — compute it)
   • More billable hours (each +5 h/week = +$X/yr)
   • Lower the goal / cut quiet costs (last resort)
5. Close: if gap > ~20%, "don't raise everyone at once — new clients first, existing +10–15% with 30 days' notice."

Output format

1. Verdict line (with the gap %)
2. Assumptions box
3. The math, each step on its own line
4. Three levers table (lever | change | yearly impact in $)
5. One-line close

Example

Input: rate $50/h · goal $80,000 gross · ~25 billable h/week · 5 weeks off.

Output:

Verdict: $50/h earns ~$58,750/yr — about 26% under your $80k goal.

Assumptions: 25 billable h/week (from you), 5 weeks off (default), gross goal (no tax adjustment applied).

Billable hours/year = (52 − 5) × 25        = 1,175 h
Income at $50/h     = 1,175 × $50          = $58,750
Rate needed         = $80,000 ÷ 1,175      = $68.10/h
Gap                 = ($68.10 − $50) ÷ $50 ≈ 26% under

Lever	Change	Yearly impact
Raise rate	$50 → $70/h	+$23,500
More billable time	25 → 30 h/week	+$11,750 (at $50/h)
Lower the goal	$80k → $59k	−$0 earned, costs you $21k

Close: at a 26% gap, raise on NEW clients immediately ($68–70), existing clients +10–15% with 30 days' notice.

Guardrails

• This is quick math, not a full pricing model — say so once, in one line, then answer.
• Show every step; never present a verdict without the arithmetic.
• Never round silently; state each assumption and default.
• Tax is a rough estimate at best — one line: "for after-tax planning, run the full calculator with an accountant's number."
• Don't quote "market rates" from memory — compare the user's rate to their own goal, that's the honest check.