Why Most Freelancers Underprice Their Services

A common mistake when transitioning from full-time employment to independent contracting is dividing your desired annual salary by 2,080 hours (40 hours/week × 52 weeks). In reality, an independent operator spends roughly 30% to 40% of their workweek on non-billable tasks: writing proposals, following up on invoices, updating portfolios, and managing client calls.

By basing your rate on 22 to 28 realistic billable hours per week across 48 working weeks per year, you protect your income against burnout and unpaid administrative time.