How to Set Your Rate as a Remote Developer

Setting your rate is one of the most uncomfortable parts of remote and freelance work. Too low, and you're overworked and underpaid; too high without the evidence to back it up, and you lose opportunities. The good news is that a reasonable rate can be worked out, not guessed.

Hourly, monthly or per project?#

• Hourly is simple and fair when the scope is unclear, but it rewards slowness and needs time tracking.
• Monthly (retainer) works well for long-term, near-full-time contract roles, and gives you predictable income.
• Per project (fixed price) rewards efficiency, but you carry the risk if the scope grows. Only use it with a clearly written scope.

Many developers use monthly rates for long-term remote roles and hourly or fixed prices for shorter freelance projects.

Step 1: Calculate your minimum#

Start from what you need to earn, then add the costs an employer would normally cover. As a contractor you may have to pay for:

• Your own leave and public holidays (no paid time off)
• Health insurance and retirement savings
• Equipment, internet, backup power and software
• Payment and currency conversion fees
• Taxes, and possibly an accountant
• Time between contracts (gaps happen)

A simple way to estimate a minimum hourly rate:

Yearly income you need (after expenses)
+ Yearly business costs (equipment, insurance, fees, accountant)
÷ Realistic billable hours per year
= Minimum hourly rate

Be realistic about billable hours. After leave, holidays, sick days and unbilled time (admin, finding clients, learning), the number of hours you can actually bill in a year is much lower than 52 weeks × 40 hours. Freelancers often bill well below full-time hours.

Step 2: Research the market#

Your minimum is the floor, not your price. Research what clients pay for your skills:

• Rates listed in remote job posts that publish salaries or rates.
• Freelance marketplace profiles with similar skills and experience. Look at people with strong reviews, not the cheapest.
• Developers already doing this. Ask in c/freelancing or c/remote-work.
• Recruiters and talent networks, who usually know the budgets.

Your market rate depends on your stack, seniority, English communication, time-zone overlap, and proof of results.

Step 3: Position yourself above "cheap"#

Competing only on price is a race to the bottom: there will always be someone cheaper. Clients who choose only on price are often the hardest to work with. Compete on:

• Specialisation: "React Native developer for fintech apps" beats "full-stack developer".
• Reliability: clear communication, meeting deadlines, overlapping hours.
• Evidence: case studies, live projects, testimonials, open-source work.

Step 4: Quote confidently#

• State your rate plainly, without apologising: "My rate for this kind of work is X per hour."
• Give options instead of discounts: reduce scope rather than your rate.
• Put it in writing: rate, currency, payment terms, what's included, and what costs extra.
• Agree who pays transfer fees and conversion costs.

Step 5: Raise your rate over time#

• Raise your rate for new clients first. It's the easiest place to test a higher number.
• For existing clients, give notice (for example 30–60 days) and explain the value you've delivered.
• Review your rate at least once a year, and whenever your skills or demand increase.

Employee vs contractor: compare fairly#

If you're comparing a contractor offer to a full-time job, compare like with like. A contractor rate needs to be higher to match an employee package once you account for paid leave, benefits and stability. Our guide to comparing job offers has a table for this, and employer of record explained covers the alternative.

Get paid properly#

Use clear invoices with payment terms, and agree on the payment method before starting work. See how to invoice international clients. For tax obligations on contractor income, check current rules with the Inland Revenue Department or a qualified adviser.

Key takeaways#

• Choose hourly, monthly or fixed pricing based on how clear the scope is.
• Calculate a minimum that covers leave, benefits, costs and realistic billable hours.
• Price from market research and the value you deliver, not from the cheapest competitor.
• Quote clearly in writing, and raise your rate regularly.

#freelancing#remote work#salary