Daily rates: the ultimate guide to invoicing fairly

Setting your daily rate is not so simple: if it's too low, customers will doubt your expertise; if it's too high, they will hesitate to select you. Finding the right balance means ensuring profitability while remaining competitive. So how do you calculate your revenue and avoid the pitfalls of freelancing? Hanna Cohen Sebban, Key Account Project Partner, and Antoine Dupuis, Senior Freelancer Manager at Malt, shared their top tips with you in our very first live FAQ.

Here are the key learnings to share following our live FAQ webinar:

1. Compare yourself to the market

Your daily rate shouldn't be determined randomly: it must be well thought-out and adapted to the market. There are several criteria to take into account when positioning yourself:

• Your business expertise
• Your level of seniority
• The region in which you work

Your competition

On platforms such as Malt, LinkedIn or in Freelancer groups, take the time to analyse the rates of profiles similar to yours.

Tip #1: on Malt, in your personal "Freelancer dashboard" area, go to the "browse profiles" area on the left of your screen. This will show you the rates charged by your peers.

Position yourself

A UX designer in Greater London will not charge the same as one in other counties. Experience, demand and location play a key role. Your geographical area must therefore be taken into account.

Your level of expertise

Whether you're a beginner, an intermediate or an expert, your price should reflect your know-how and the value you bring to your prospect.

Tip #2 : The essential tool for defining your daily rate on Malt: thanks to the expertise of our large community of freelancers, we have created a handy benchmark of Malt Average freelancer rates to save to your favourites. This tool is based on real data to give you a clearer view of rates in your field.

2. Anticipate additional costs (and avoid unpleasant surprises)

As a freelancer, you're responsible for more than just the work itself — you're running a business. Here are key costs to factor into your daily rate to avoid undercharging:

• Taxes and contributions: This includes your income tax, National Insurance contributions, and potentially pension payments if you're contributing to a private scheme. Make sure you're registered with HMRC and set aside enough to cover your tax bill.
• Tools & software: Subscriptions to tools like Adobe Creative Cloud, Figma, Notion, or any industry-specific platforms you rely on. These are business essentials, so include them in your rate calculations.
• Days not billed: Holiday, sick days, gaps between projects, or downtime for training and admin work. Your daily rate should cover these non-billable periods to ensure a stable income over time.
• Equipment & workspace: Laptop, phone, office supplies, or even coworking spaces if you work outside the home. These are legitimate business expenses that need to be factored into your pricing.

To make it easier for you to manage your Freelancer business, we have established a few partnerships with experts who can provide you with support, especially when it comes to making your daily life as a freelancer easier. Take a look at partners page on Malt.

3. Adapting Your Daily Rate to the Project

A good freelancer knows how to adapt! Your daily rate can (and should) vary depending on the project and how it is carried out. There are various criteria to take into account:

• Long-term project: It's sometimes a good idea to reduce your average daily rate slightly in order to secure a stable contract over several months. This can be an excellent opportunity to guarantee a regular income while strengthening your relationship with the customer. It will also save you time in prospecting for future projects.
• Niche/ultra-niche expertise: If the project requires rare expertise, don't hesitate to adjust your daily rate accordingly. A client looking for the famous "five-legged sheep" for complex or technical projects will be prepared to pay a higher rate for this specialisation.
• Tight deadlines? The higher the level of commitment, the more your daily rate needs to be adjusted. The stress of tight deadlines and the intensity of work often mean personal sacrifices, which is why it's important to keep track of all your working hours.

Our Malt platform allows you to make the necessary adjustments to the terms and conditions of your next project.

Set a Daily Rate That Works for You on Malt

Here are a few tips to keep in mind when using Malt:

• Define and stick to a consistent daily rate: When you share your daily rate at the beginning of a conversation with a client or a Malt Project Partner, try to avoid changing it later in the process unless there's a valid reason. Unexpected changes can undermine trust and risk losing the project.
• Use a rate range if you're unsure: If you're uncertain about what daily rate to quote at first (for example, because it depends on the client's specific needs), it's often better to offer a range rather than a fixed number. This keeps things flexible while setting clear expectations.
• Consider the total cost for the client: Keep in mind that the final price the client pays is higher than your published daily rate, due to platform fees and VAT (if applicable). Be aware of this when negotiating and adjust your communication accordingly.
• Optimise your daily rate on Malt: Set an average daily rate that reflects your expertise while staying competitive. A figure that's too high might mean missing out on potential projects. For example, if you're open to working on projects between £900 and £1,100 per day, posting a daily rate of £980 could be a smart middle ground.

Offer flexible solutions

If your daily rate is above a client's budget, consider offering alternatives - such as working four days a week instead of five - to help reach a compromise.

Setting your daily rate is all about striking the right balance between profitability and competitiveness. By understanding the market, anticipating your costs, and adjusting your rate to suit each project, you'll be well equipped to negotiate confidently and showcase your value - both on Malt and in your day-to-day freelance work.