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From Newbie to Pro: How to Determine Your Freelance Software Developer Hourly Rate

One of the key elements in determining your success as a freelance software developer is your hourly rate.Your rate can make or break you, so it’s essential that you have an understanding of how to set your price and negotiate with clients. In this article, we’ll discuss why it’s important to determine your hourly rate in addition to the industry average for software developers. We’ll also share some tips on negotiating with clients when determining their budget for projects.

Importance of Determining Your Hourly Rate

Determining your hourly rate is one of the most important steps in becoming a freelance software developer. It’s also one of the most difficult to do correctly because there are so many factors involved.

The first step in determining your hourly rate is determining how much money you want to make each hour. This doesn’t mean that you should set out with an exact number in mind; instead, it means thinking about how much money would feel like enough for all of your expenses and still leave some left over for savings or other investments (like paying off student loans). Using a software development invoice template can help you keep track of your income and expenses, making it easier to determine how much money you need to earn in order to reach your financial goals. It can also ensure that you are paid on time and help you project a professional image to clients.

Once you have determined this amount–let’s call it “X”–you can begin considering what factors will affect how much X should actually be worth per hour. For example: if I have three years’ experience as a web developer but no formal education as such (i.e., no degree), should my pay be closer to someone who has five years’ experience and does have an advanced degree? Or should their pay be higher than mine because their credentials indicate a greater skill level?

What is the Average Hourly Rate for a Software Developer?

The average hourly rate for a software developer is $50-60 per hour, but this can vary depending on many factors. Location and experience level are two of the biggest determinants when it comes to determining how much you should charge. The National Association of Software and Services Companies (NASSCOM) estimates that the average salary for software developers in the United States is $67 per hour.

Tips for Negotiating your Rate With Clients

When negotiating your freelance software developer hourly rate with clients, it’s important to be confident in both your skills and work. You want to make sure that you are charging a fair price for the value that you provide.

You may also want to consider what kind of client you’re dealing with—if they have a budget and need help getting started quickly, then it might be worth lowering your rate slightly so that they can afford your services without having to spend too much time hunting down other freelancers who might charge less than what you would charge on average. On the other hand, if this is an established company with plenty of money (or even just one rich person), then charging more than usual may not cause any problems at all; in fact, some people will actually be willing to pay more because they know how valuable good developers are!

In general, though: don’t forget about yourself when deciding how much money should go into each project; remember that this isn’t just about making others happy–it’s about helping YOU grow as well! There are various money managing tools available that can help you track your expenses and investments. These tools can assist you in making informed decisions about how much money to allocate to each project. 


The freelance software developer hourly rate is a topic that can be confusing for even the most experienced freelancers. If you’re just starting out, it’s even more important to know what your rate should be so that you don’t undervalue yourself or overcharge clients. The best way to determine this number is by talking with other freelancers in similar fields as well as researching industry averages online–and don’t forget about negotiation skills!