A Guide For The Freelance Writer: How To Calculate Your Rates Per Word
As a freelance writer, there are a number of ways to bill your clients, such as per hour, per word or even per project. If you choose per word billing, you need to have a good way to calculate your rates correctly. This handy guide can help you do just that.
Make sure it’s the right method for you
Each of the billing methods mentioned above has its own advantages and disadvantages, so you should investigate each of them before settling on one. The billing method you choose will mainly depend on the type of project, the time required to complete the project, and your skill as a writer.
How to do the calculation
In order to compute your rates per word, you first need to work out your hourly rate. Follow the steps below to compute your hourly rate
- Decide on a realistic desired annual income
- Decide how many days per week you will work
- Decide how many hours per day you will work
- Multiply days per week by hours per day to find your billable hours per week
- Decide on how many weeks of leave you will need for holidays and sick days each year
- Subtract your number of weeks of leave from 52 to find the number of weeks you’ll work annually
- Multiply your billable hours per week by the number of weeks you’ll work annually to find the number of hours you’ll work annually
- Divide your desired annual income by the number of hours you will work annually to find your hourly rate
Now that you’ve calculated your hourly rate, you can calculate your rates per word. Follow the steps below to do this
- Determine how many words you can write in 10 minutes for an average project
- Multiply this number by six to find the number of words you can write in an hour
- Divide your hourly rate by the number of words you can write in an hour to find your rates per word
Use a free website
If you find these calculations a bit tough, search the Internet for a free rates per word calculator. There are a few free hourly rate calculators online, so you could also use one of these to compute your hourly rate and then follow the steps above to compute your rates per word.