Stop Undervaluing Your Time
Many freelancers transition from a stable 9-to-5 only to find they are working twice as hard for half the money. By identifying your exact break-even point in 'Billable Hours,' you can set minimum project rates that guarantee profitability rather than just guessing.
The 'Owner Salary' Requirement
When calculating break-even as a freelancer, your personal living expenses must be factored into your Fixed Costs. If you don't calculate an owner salary, your 'business' might break even, but you won't be able to pay your personal rent.
Productizing Your Services
Selling individual hours caps your earning potential. Instead, package your services into fixed-price projects (Units). Use our Expense Tracker to monitor your monthly software bloat, and package your skills to lower the total number of 'Units' you need to sell.
Frequently Asked Questions (FAQ)
Software subscriptions (Adobe, Notion, hosting), internet bills, professional liability insurance, and a baseline 'owner salary' to cover your personal living expenses.
If you do all the work yourself, your Variable Cost might just be payment processing fees (e.g., PayPal's 3%). If you outsource parts of a project to subcontractors, their fee is a Variable Cost.