Hourly rate
You charge for every hour you work, tracked and invoiced after the fact.
Best for: Open-ended work where the scope genuinely can't be pinned down.
Avoid when: You're fast, experienced, and the work has an obvious commercial value well above the hours it takes you.
How it works
You agree a rate, track your time against the work, and invoice for the hours you used. The client carries the risk of the work taking longer than expected, which is why they'll usually want a cap or an estimate before they say yes.
What it looks like
At £75/hour, a job you estimate at 20 hours is a £1,500 ballpark. If it takes 26 hours, you invoice £1,950 — assuming the client agreed to the overrun.
Example project
Rescuing a half-finished internal tool
A logistics startup inherits a part-built inventory tool from a contractor who left, and nobody can say what works. You agree £75/hour with a 30-hour review block, report weekly, then continue in 20-hour tranches once the picture is clear. Six weeks and £4,200 later it ships.
Where it wins
- Simple to explain and simple to justify.
- Scope changes look after themselves — more work, more hours, more money.
- You never end up working for free on a job that balloons.
Where it hurts
- Your income is capped by the hours in your day.
- Getting faster and better actively earns you less.
- Invites clients to scrutinise your time instead of your results.
Hourly rate: frequently asked questions
How much should I charge per hour as a freelancer?
#
Start from the annual income you need, divide by your realistic billable hours — usually 1,000 to 1,200 a year, not 2,000 — then add your costs, tax, and time off. That number is your floor, not your target. Check it against market rates before you quote.
Is hourly billing bad for freelancers?
#
It isn't bad, it's limited. Hourly caps your income at the hours in your day and quietly penalises you for getting faster. It's the right tool for genuinely open-ended work and the wrong one for anything you can scope and price on outcome.
Should I tell clients my hourly rate?
#
Only when hourly is what you're selling. Naming a rate invites comparison with everyone cheaper and moves the conversation onto time rather than results. For fixed-fee or value-based work, quote the project number and keep your internal rate internal.
How do I raise my hourly rate with existing clients?
#
Give notice in writing — 30 to 60 days is normal — state the new rate plainly, and don't over-explain or apologise. Apply it to new work first if you have long-running commitments. Expect a small number of clients to leave; that is usually the point.
Get the deep dives
Worked examples and scripts for every strategy. No spam.