Short answer
Work backwards from what you need to earn: add up your monthly income goal and business costs, divide by the hours you can realistically bill, and that's your minimum hourly rate. Then check what others in your field charge and adjust for your experience and results. Many new freelancers undercharge by forgetting unpaid admin time, tools, and tax.
Step 1: Know your target
Decide how much you want to earn per month, then add your business costs: data, tools, transport, subscriptions, and a share for tax.
Step 2: Count your billable hours honestly
You won't bill every working hour. Admin, finding clients, and revisions all take time. If you work 160 hours a month, perhaps 80 to 100 of them are billable.
Step 3: Calculate your minimum rate
Add your target income and costs, then divide by your billable hours. For example, ₦400,000 plus ₦80,000 in costs, divided by 80 billable hours, gives ₦6,000 an hour as your minimum.
Step 4: Check the market
See what others with similar skills charge. If you're far below them, you're probably undercharging. If you're far above, make sure your work and results justify it.
Hourly or fixed price?
- Hourly suits work where the scope is unclear.
- A fixed project price suits well-defined jobs and rewards you for working efficiently.
If you sell products
Price from the cost of materials plus your time, then add a margin. Check your profit margin regularly.
Raise your prices over time
As your skills and demand grow, raise your rates, starting with new clients.
Doing this in Gripd
Gripd has a pricing calculator that works out a price from your costs, time, and target profit, and a job cost estimator for building a price from materials, labor, and overhead. You can turn an estimate straight into a quote or an invoice.
Last updated 29 Sept 2026
Related questions
How do I follow up on an unpaid invoice?
Send a friendly reminder a day or two after the due date with the invoice attached, then follow up again after about a week if you haven't heard back, more directly and with a phone call if you can. Keep every message polite and factual, and note each follow-up. Most late payments are forgotten invoices, not refusals.
Read the full answerHow do I keep track of who owes me money?
Keep one list of every debt owed to you, with the person's name, the amount, what it's for, and when they said they'd pay. Update it the moment anyone pays, and check it weekly so you can follow up on anything overdue. Money you're owed but not tracking is money you're likely to lose.
Read the full answerHow do I write an invoice?
An invoice should include your name or business name, your customer's name, a unique invoice number, the date, a clear list of what you're charging for with prices, the total, the due date, and how to pay you. Send it as soon as the work is done, and keep a copy so you can track whether it's been paid.
Read the full answerWhat is the difference between a quote and an invoice?
A quote is an offer sent before the work starts, telling a customer what a job will cost so they can agree to it. An invoice is a request for payment sent after the work is agreed or done. A quote isn't a bill; an invoice is.
Read the full answerTrack it all in one place
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