Is there a rule of thumb for calculating your freelance rate? Does it change for FAANG companies? NY/Bay area if that’s a factor.

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The only rule I’ve ever heard is to take your current salary (or the one you want) and drop three 0’s.

So if you’re making $100,000 annually your hourly freelance rate would be $100.

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Fulltime Salary / 125 is also a rule I’ve heard used

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🤯

My rule is ask other people what they charge and say the same thing.

“How much you need to live on” as in per day?

When negotiating, are there advantages to providing either an hourly rate vs day rate?

Day rate is most advantageous for you, and often for the agency too (avoids surprises for them, you get to take advantage of time waiting for feedback without wondering whether you bill)

When you work hourly, you can get into a situation where your hours get nitpicked (why did x take that long, or why are you billing time waiting for feedback, etc). Or things get slow and they expect you to only bill for time worked. So in general when given the choice, day rate is usually best. But if you do hourly, try to get them to agree to a minimum number of hrs up front.

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It's all about demand but I'd focus on a day rate not an hourly rate. Many companies prefer to look at a day rate because it's easier to track the budget. I'd also say that if you are at a higher level, day rates are more common.

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