Many freelancers, consultants, coaches, and service-based business owners choose their prices by looking at competitors or estimating what customers might pay. However, competitor prices do not reflect your expenses, available working hours, income goals, or project costs.

A sustainable price should help cover the real cost of operating your business while supporting the income and profit you are working toward.

1. Income goal
Determine how much you want the business to generate during the year.

2. Business expenses
Include software, subscriptions, marketing, insurance, equipment, professional services, and other operating costs.

3. Billable capacity
Not every working hour can be billed to a client. Administration, marketing, planning, and communication also require time.

4. Project costs
Account for contractors, materials, transaction fees, travel, and other costs connected to delivering the service.

5. Target profit
Profit gives the business room to grow, invest, and respond to unexpected expenses.

Begin by combining your desired income, annual business expenses, and target profit. Divide that amount by your realistic annual billable hours to establish a useful hourly pricing reference.

You can then add project-specific costs and estimate the time required to complete each service. This creates a more informed starting point for hourly rates, project prices, and service packages.

Income goal + business expenses + target profit

÷ realistic billable hours = hourly pricing reference 

• Copying a competitor’s prices without knowing their costs

• Treating every working hour as billable

• Forgetting software and transaction fees

• Underestimating project preparation and revisions

• Setting one price and never reviewing it

• Confusing business revenue with personal income

• Leaving no room for profit or business growth

• Freelancers

• Consultants

• Coaches

• Creative service providers

• Virtual assistants

• Marketing professionals

• Independent contractors

• Small service-based businesses

How often should I review my service prices?

Review your pricing when your expenses, availability, services, experience, or financial goals change. A scheduled quarterly or annual review can also help you identify outdated assumptions.

Should I copy my competitors’ prices?

Competitor research can provide market context, but it should not replace calculations based on your own expenses, capacity, project costs, and goals.

What are billable hours?

Billable hours are the hours directly charged to clients. Administrative work, marketing, planning, and other internal tasks usually reduce the number of hours available for paid client work.

Can I use the RIALDEN calculator without advanced Excel knowledge?

No advanced Excel knowledge is required. The included Quick Start Guide explains how to enter your information and use the calculator. Basic familiarity with opening, editing, and saving an Excel workbook is helpful. 

Replace disconnected calculations with one organized Excel pricing tool created for real service-business decisions.