How to set your rates if you’re freelancing

You’ve picked up a freelance gig: maybe designing logos, tutoring, or filming TikToks for small businesses. Solid move. But then comes the awkward part: How much should I charge ah? If you’ve ever googled ‘freelance rates Singapore’ and ended up more confused than before, you’re not alone. Setting your rates isn’t just about guessing or copying what others charge. It’s about knowing your worth, understanding your costs, and making sure you’re not working OT for peanuts.

How to price your services (without undercutting yourself):

• Start with research: See what others are charging for similar services. It’s tempting to offer a super low rate when you’re starting out to attract customers, but don’t do that — potential clients may think that you’re offering poor quality service/product.
• Consider time + skill level: If you’re spending 3 hours editing a video, $5 isn’t worth it.
• Use this formula: Your time is valuable, and not all of it gets paid. Here’s a way to set your freelance rate - one that factors in both expenses and unpaid hours.
• Formula:
  Hourly rate = (Target monthly income + Monthly expenses) / (Billable hours × Utilisation rate)
• Break it down:
  Let’s say you’re just starting out and want to earn $2,000/month.
• Target monthly income = $2,000
• Monthly expenses = $300 (software, transport, phone, etc.)
• Realistic billable hours = 60 (15 hours/week of actual paid work)
• Utilisation rate = 0.75 (Percentage of your working time that’s actually billable to factor in time spent on admin, pitching, breaks)
• Calculation: ($2,000 + $300) / (60 × 0.75) = $2,300 / 45 = ~$51.11/hour
• Add a buffer if needed: Round up to $55/hour to build in CPF savings or just to give yourself breathing room.
• Why this works:
• You’re not just pricing for time. You’re also pricing for sustainability.
• This keeps you from burning out or always chasing more gigs just to breakeven.
• Plus, it helps you explain your rates confidently to clients.
• Be open to negotiating, but don’t work for ‘exposure’ unless it’s truly worth it.

Managing clients like a pro:

1. Always clarify scope: What exactly are you being paid to do? How many revisions? What’s the deadline?
2. Get it in writing: Even a simple Telegram message can serve as proof of agreement.
3. Stay polite but firm: Clients might ask for more than agreed - learn to say no nicely.
4. Track your jobs: Use Google Sheets or productivity tools like Notion to keep tabs on who owes what and when.

Remember, freelancing is more than just the work - it’s about being your own admin, marketer, and accountant too. Picking up all those skills will serve you well in the future.