Quick answer: start by calculating a floor rate that covers your target take-home pay, self-employment tax (15.3% on net earnings for Social Security and Medicare, per the IRS), income tax, platform fees and business costs. Then research what others charge for similar work and set your price at or above that floor. Most beginners start with hourly pricing, then move to project or package pricing once they can estimate time accurately, and raise rates with every few new clients.
Pricing is one of the hardest parts of starting a service side hustle. Charge too little and you work long hours for little money, attract bargain hunters and burn out. Charge too much without the experience to back it up and inquiries dry up. The good news is that pricing is a skill, and a simple process takes most of the guesswork out of it.
This guide walks through calculating a minimum rate, researching the market, choosing a pricing model and presenting prices confidently. It applies to freelance writing, design, bookkeeping, virtual assistance, tutoring, photography, pet sitting, handyman work and most other service hustles. For ideas on which services to offer, see our guide to side hustle ideas.
Sources: Internal Revenue Service, Self-Employment Tax (Social Security and Medicare Taxes) and Estimated Taxes guidance; U.S. Small Business Administration guidance on pricing and business planning; platform help pages for freelance marketplace fees (check current fees directly, as they change). This article is general information, not tax or legal advice. Checked October 2026.
Step 1: Calculate Your Floor Rate
Your floor rate is the minimum hourly amount you need to make the work worthwhile. It is not necessarily what you charge, but you should rarely go below it.
Start with your target income
Decide how much you want to take home from the side hustle per month. For example, a goal of $1,000 per month after taxes and costs.
Estimate realistic billable hours
Not every hour you work is billable. Marketing, emails, invoicing and learning take time too. Many freelancers find that only half to two-thirds of working time is billable. If you can work 10 hours a week on the side hustle, you might bill 6 to 7.
Add self-employment tax
According to the IRS, self-employment tax is 15.3% on net earnings, made up of 12.4% for Social Security and 2.9% for Medicare. It generally applies once net self-employment earnings reach $400 in a year. You also owe regular income tax on side hustle profit. Our guide to side hustle taxes for beginners covers estimated payments and deductions.
Add business costs
Include software subscriptions, equipment, supplies, mileage, website costs and platform fees.
A worked example
| Item | Monthly amount |
|---|---|
| Target take-home | $1,000 |
| Estimated taxes (assume about 30% of profit for this example) | about $430 |
| Business costs | $100 |
| Total revenue needed | about $1,530 |
| Billable hours per month | 26 |
| Floor rate | about $59 per hour |
The tax percentage in this example is only an illustration. Your actual rate depends on your income, state and deductions, so check with a tax professional.
Most people start a side hustle for extra money and flexible hours. Pricing protects both. If your rates are too low, you need more clients to reach your income goal, and those extra hours eat into the flexibility that made the side hustle appealing in the first place.
Step 2: Research Market Rates
Your floor rate tells you what you need. Market research tells you what clients expect to pay.
Where to look
- Freelance marketplaces: browse profiles of people offering similar services in your niche and note their rates and reviews.
- Competitor websites: many local service providers list prices or starting rates.
- Industry groups and surveys: professional associations in fields such as writing, design and bookkeeping sometimes publish rate surveys.
- Ask peers: online communities for your field often share rate ranges.
Compare like with like
Experience, specialization, location and quality all affect price. Compare yourself with people at a similar level and in a similar niche.
Watch for platform fees
Freelance platforms charge service fees that reduce your take-home pay. Fee structures change, so check the current fee on each platform’s help pages and factor it into your price. Our guide to the best jobs on Upwork covers popular services on that platform.
Step 3: Choose How to Price Your Services
| Model | How it works | Best for | Watch out for |
|---|---|---|---|
| Hourly | Bill for time spent | New hustlers, unclear scope | Income capped by hours; clients may watch the clock |
| Per project | One price for a defined deliverable | Clear, repeatable projects | Scope creep if terms are vague |
| Package | Bundled services at set prices | Services with tiers, such as photography or social media | Must define what is included |
| Retainer | Monthly fee for ongoing work | Bookkeeping, social media, virtual assistance | Need clear monthly limits |
| Per unit | Price per word, page, pet visit or item | Writing, editing, pet care, cleaning | Must account for extra complexity |
Hourly pricing
Hourly pricing is simple and protects you when the scope is unclear. Track your time carefully, even on projects you price differently, so you learn how long tasks actually take.
Project pricing
Once you know how long a typical project takes, quote a flat project price. Clients often prefer knowing the total up front, and you benefit when you work efficiently.
To price a project, estimate hours, multiply by your target hourly rate and add a buffer of 10% to 20% for revisions and communication.
Package pricing
Packages bundle services into tiers, often labeled basic, standard and premium. Many buyers choose the middle option, so design the middle tier to be the one you most want to sell.
Retainers
A retainer is a recurring monthly fee for an agreed amount of work. Retainers create steady income, which is valuable for side hustlers who want predictable earnings.
Step 4: Set Your Starting Price
Start at or above your floor
If market rates are below your floor, consider whether the service is worth offering, whether you can specialize in a higher-paying niche, or whether you can work more efficiently.
Beginner discounts, carefully
New side hustlers often price slightly lower to gather reviews and portfolio pieces. If you do, set a clear limit, such as your first three clients, and tell them the price is an introductory rate.
Avoid racing to the bottom
Competing only on price attracts clients who will leave for someone cheaper. Compete on reliability, communication, speed and specialized skills instead.
Step 5: Present Prices With Confidence
Write clear quotes
A good quote includes:
- What is included and what is not
- Number of revisions
- Timeline and deadlines
- Price and payment terms
- What happens if the scope changes
Ask for deposits
For project work, many freelancers ask for a deposit, often 25% to 50%, before starting. This protects you from clients who disappear.
Use simple contracts
Even a short written agreement clarifies scope, payment and deadlines. Many freelance platforms provide built-in contracts.
Practice saying your price
State your price plainly, without apologizing, and then stop talking. Clients respond to confidence.
Step 6: Raise Your Rates Over Time
When to raise rates
- You are booked solid or turning away work
- You have added skills, certifications or strong reviews
- Your costs have increased
- It has been six months to a year since your last increase
How to raise rates
- New clients first: quote higher rates to new clients while keeping existing clients at their current price for a while.
- Give notice: tell existing clients 30 days or more in advance.
- Raise in steps: increases of 10% to 20% are common.
Handling Price Objections
Sooner or later, a potential client will say your price is too high. A calm, prepared response keeps the conversation going without automatically cutting your rate.
Ask what they are comparing
Sometimes the client is comparing your quote with a very different service. Asking “What are you comparing this with?” often reveals a misunderstanding about scope or quality.
Adjust scope, not price
Instead of lowering your rate, offer a smaller version of the project. Fewer pages, fewer revisions or a longer timeline can bring the total down while keeping your hourly value intact.
Explain the value
Point out what the client gets: faster turnaround, specialized experience, clear communication or results from similar projects.
Be willing to walk away
Some clients will never be a good fit. Losing a low-paying client frees time for better ones, and a polite exit leaves the door open if their budget changes later. A short reply such as “Thanks for considering me; if your budget or timeline changes, I’d be happy to revisit this” keeps the relationship friendly.
Rush Fees, Extras and Add-Ons
Clear policies for extras protect your time and income.
- Rush fees: charge more for work needed faster than your normal turnaround, often a percentage of the project price.
- Extra revisions: set a price for revisions beyond the included number.
- Add-ons: offer optional extras, such as social media graphics with a blog post or printed photos with a session.
- After-hours work: because side hustlers often have a day job, consider charging more for weekend or evening urgency.
Pricing Local, In-Person Services
Local services such as cleaning, lawn care, pet sitting and handyman work have extra costs to consider.
- Travel time and mileage: include driving time in your price or charge a travel fee beyond a set radius. The IRS publishes a standard mileage rate each year that many self-employed people use for tax deductions.
- Supplies and materials: decide whether supplies are included or billed separately.
- Minimum charges: set a minimum price per visit so short jobs are still worthwhile.
- Local market: prices differ greatly between cities and rural areas, so research local competitors.
How to Price Your Services: Examples by Side Hustle Type
| Side hustle | Common pricing approach |
|---|---|
| Freelance writing | Per word, per article or per project |
| Graphic design | Per project or package |
| Virtual assistance | Hourly or monthly retainer |
| Bookkeeping | Monthly retainer based on transaction volume |
| Tutoring | Hourly or session packages |
| Photography | Packages and mini-session pricing |
| Pet sitting | Per visit or per night |
| Handyman work | Hourly plus materials, or per job |
Actual rates vary widely by location, experience and niche, so use these as starting structures rather than specific prices.
Pricing content and writing services
Content services are some of the most common side hustles, and each tends to suit a different structure:
- Blog posts: usually priced per post or per project, with the price based on length, research needed and whether you handle images and formatting.
- Product descriptions: often priced per description or in batches (for example, a set of 20), since each one is short but repetitive.
- Social media content: commonly sold as a monthly package, such as a set number of posts per week, with clear limits on revisions and on whether you handle scheduling or replies.
Whatever you offer, write down exactly what is included so the client knows what they are paying for and you can spot scope creep early.
Common Mistakes When You Price Your Services
- Forgetting taxes. Self-employment tax and income tax can take a large share of earnings.
- Ignoring unbillable time. Admin and marketing time must be covered by billable hours.
- Unlimited revisions. Always set a revision limit.
- No written scope. Vague projects grow without extra pay.
- Never raising prices. Rates should grow with your skills and demand.
- Underpricing out of fear. Low prices can signal low quality.
Tracking Whether Your Prices Work
Track hours, income and expenses for every project. After a few months, compare your effective hourly rate (income divided by all hours worked) with your floor rate. If it is lower, adjust prices or scope. Reaching an income goal such as those in our guide on how to make $2,000 a month becomes much easier with accurate numbers.
Value-Based Pricing for Experienced Side Hustlers
Once you have experience and results, consider value-based pricing, which ties price to the value delivered to the client rather than hours spent. For example, a website redesign that is expected to bring a business more leads may justify a higher price than the hours alone suggest. Value-based pricing requires understanding the client’s goals and having a track record, so most beginners start with hourly or project pricing.
Frequently Asked Questions
Should I charge hourly or per project?
Hourly works well when scope is unclear or when you are new. Project pricing works well once you can estimate time accurately.
How do I figure out my minimum rate?
Add your target take-home pay, taxes and business costs, then divide by realistic billable hours.
What is self-employment tax?
The IRS describes it as 15.3% on net self-employment earnings, covering Social Security and Medicare, and it generally applies when net earnings reach $400 or more in a year.
When should I raise my prices?
Consider raising prices when you are fully booked, have added skills or reviews, or have not increased rates in six months to a year.
Should I ask for a deposit?
Many freelancers request 25% to 50% up front on project work to reduce the risk of nonpayment.
How do I price my services as a beginner?
Start with your floor rate, based on your income goal, realistic billable hours, self-employment tax and costs. Compare it with current market rates for similar work, then set a starting price at or above your floor and raise it as you gain experience and reviews.
How should I price social media content or blog posts?
Blog posts are usually priced per post or project, and social media content as a monthly package. Define the number of pieces, revisions and extras included so the price matches the work.
Sources
- Internal Revenue Service. Self-Employment Tax (Social Security and Medicare Taxes).
- Internal Revenue Service. Estimated Taxes.
- U.S. Small Business Administration. Business planning and pricing guidance.
- Freelance platform help centers for current service fees.