Most freelancers set their rate by looking at what others charge and picking something nearby. This...
Most freelancers set their rate by looking at what others charge and picking something nearby. This feels safe. It also creates a systematic problem: you end up pricing based on what the market accepts, not what your business actually needs.
Here is the maths that most rate-setting advice skips.
The utilisation problem
If you work 40 hours a week, you are not billing 40 hours a week.
A realistic breakdown looks something like this:
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