A working framework that turns your costs, your value, and the competitive market into a 3-tier price ladder you can publish on your site this week.
Below this number, you lose money on every sale. This is your gut-check, not your price.
What this delivery is worth to the client over 12 months. Pricing scales with this number, not your hours.
The middle tier ("Anchor") is what most buyers will pick. The other two exist to make the Anchor feel like the smart, safe choice.
Built-in inflation adjustment. Don't apologize for it — it's standard SaaS practice.
Bridge from Anchor to Aspiration tier — credit existing payment, charge the difference. Removes friction at the upsell moment.
Anything outside the package is billed hourly at $250/hr. Protects margins; trains clients to stay in scope.
For Anchor & Aspiration tiers only — protects cash, locks in retention.
Most service businesses price by what felt reasonable when they started, then never raise it. They charge $75/hour because that's what they charged in 2019 — meanwhile their materials cost more, their software stack costs more, their target market expects more, and the great operators in their niche charge $150/hour and don't apologize. This worksheet runs the math that supports a defensible, profitable rate.
Solo service providers and small agencies who price by the hour, by the project, or by retainer — and who suspect they're underpricing. Especially useful when raising rates with existing clients (the math gives you the language to justify it).
1. Cost of your time. What you NEED to earn per hour to live your life. Salary divided by billable hours per year. (Most freelancers forget that only about 60% of working hours are billable — meetings, emails, admin, sales don't bill out.)
2. Cost of overhead. Software stack, tools, equipment, office, insurance, taxes (yes, taxes — about 30% of every dollar). Divided by billable hours.
3. Profit margin. The amount above (1) + (2) that lets you save, reinvest, and weather bad months. Industry norm is 25-50% on services.
4. Market rate band. What competitors actually charge. NOT what they ADVERTISE — that's marketing. What they REALLY get clients to pay. Phone three of them as a fake prospect to find out.
1. Calculate your true hourly rate. The worksheet asks for: target annual income, target annual profit, overhead expenses, and billable hours per week. It outputs your floor rate (below which you're losing money) and your target rate (above which the business is healthy).
2. Calculate project-based price. Estimate hours per project. Multiply by target rate. Add a 20% buffer for scope creep. That's your project price.
3. Calculate retainer price. Hours committed per month × target rate × 0.85 (the retainer discount reflects predictability). That's your monthly retainer.
4. Compare to market. If your number is wildly above the market, your service needs to be obviously premium. If it's right on the market, you have a normal business. If it's wildly below, you're underpricing and the worksheet just told you so — raise your rates.
Grandfather existing clients at the old rate for 6 months, then move them up. Don't surprise anyone. A 90-day notice email goes a long way: "Effective January 1, my hourly rate moves from $X to $Y. Here's why and what stays the same for you."
Raise rates with new clients first. The next inquiry that comes in, quote the new rate. If they bite, you've validated it. If they don't, you've lost a client you would have lost anyway.
Add value before raising. New deliverable, new turnaround time, new bonus. The raise feels like fair exchange instead of inflation.
Never apologize for the increase. Confidence is half of pricing. "My rates are going up" is professional. "I hate to do this but..." is amateur.
Audit your rate annually. Costs creep, market moves, your skill grows. The rate from January doesn't fit November. Set a calendar reminder.
Track win rate by rate. If you're winning 90% of pitches, you're undercharging. Healthy services win 35-55% of pitches. If you never lose a pitch, your price isn't doing any qualifying work.
Use rate to filter clients. Higher rates filter for clients who value the work; lower rates attract clients who shop on price. Pick the type of client you want.
The sample uses generic numbers. Your version is pre-filled with YOUR target income, YOUR overhead, YOUR billable-hours reality, YOUR market band. $19 pre-built, $97 fully custom at yoursaas.diy. Excel-compatible. Editable in any spreadsheet app. Yours forever.