IT Freelancer Rates 2026: What You Can Charge

The question of the right rate concerns every IT freelancer. Too low – and you're working below your value. Too high – and you lose contracts. This guide provides current market data for 2026 and a formula for calculating your optimal rate.

Market Overview: IT Freelancer Daily Rates 2026

The following values are based on current market data and project listings in the US and European markets.

By Specialty

Specialty	Daily Rate (Median)	Range
SAP Consulting	$1,600	$1,300 - $2,200
Cloud Architecture (AWS/Azure)	$1,550	$1,200 - $2,000
Cybersecurity	$1,500	$1,150 - $1,900
Data Engineering / ML	$1,450	$1,100 - $1,850
DevOps / SRE	$1,400	$1,050 - $1,750
Software Architecture	$1,400	$1,100 - $1,800
Kubernetes / Container	$1,350	$1,000 - $1,700
Backend Development	$1,200	$900 - $1,550
Frontend Development	$1,150	$850 - $1,450
IT Project Management	$1,350	$1,000 - $1,700
Agile Coach / Scrum Master	$1,250	$950 - $1,600
IT Support / Administration	$900	$650 - $1,150

By Experience Level

Level	Years Experience	Rate Factor
Junior	0-2 years	0.6 - 0.75x
Mid-Level	3-5 years	0.85 - 1.0x
Senior	6-10 years	1.0 - 1.25x
Expert	10+ years	1.2 - 1.5x
Specialist (Niche)	any	1.3 - 2.0x

By Region (US)

Region	Factor vs Median
San Francisco / Bay Area	+20% to +35%
New York City	+15% to +25%
Seattle	+10% to +20%
Boston	+10% to +20%
Austin / Denver	+5% to +15%
Other Major Cities	±0% to +10%
Remote (nationwide)	-5% to +5%

Hourly Rate vs. Daily Rate: Which is Better?

Daily Rate (recommended)

Advantages:

• Simpler calculation for both parties
• Less discussion about "how long did that take"
• Higher perceived value
• Standard for larger projects

Disadvantages:

• Less flexible for short engagements
• Client expects full availability

Conversion:

Daily Rate = Hourly Rate × 8
Hourly Rate = Daily Rate ÷ 8

Hourly Rate

Advantages:

• Flexible for variable workloads
• More transparent for smaller tasks
• Good for support contracts

Disadvantages:

• Can lead to micromanagement
• Lower perceived value

The Rate Formula: Calculate Your Minimum

Step 1: Define Target Income

What do you want to earn net? Calculate up from an employee salary:

Comparable gross annual salary:     $120,000
+ Benefits (health, 401k match):     $25,000
+ Vacation & sick time buffer:       $12,000
+ Training & equipment:               $6,000
+ Acquisition time (unpaid):         $10,000
+ Profit margin & risk buffer (15%): $26,000
= Target annual revenue:            $199,000

Step 2: Calculate Billable Days

Working days per year:    250
- Vacation:                25
- Sick time (buffer):      10
- Training:                10
- Acquisition & admin:     25
- Project gaps:            25
= Billable days:          155

Step 3: Calculate Daily Rate

Daily Rate = $199,000 ÷ 155 days = $1,284

Minimum daily rate in this example: $1,284

Round to psychologically effective values: $1,300 or $1,350

The Quick Formula

Daily Rate = (Employee Salary × 1.65) ÷ 155 days

Example: $120,000 × 1.65 ÷ 155 = $1,277 minimum

10 Factors That Influence Your Rate

Can increase your rate:

1. Niche expertise (SAP S/4HANA migration, legacy modernization)
2. Certifications (AWS Solutions Architect, CISSP, PMP)
3. Reference projects at well-known companies
4. Quick availability for urgent needs
5. Complex requirements (regulated industries, security requirements)

Can decrease your rate:

6. Long project duration (> 6 months = 5-10% discount typical)
7. Remote work (saves travel time, client expects discount)
8. New client entry (strategically for reference)
9. Low complexity (standard tasks)
10. High competition (many available freelancers)

Negotiation Tips for IT Freelancers

What you should never do:

• Give in immediately at the first pushback
• Quote hourly rate when asked for daily rate
• Give discounts without getting something in return
• Quote prices "off the cuff"

What works:

1. Anchor high

Name your desired price first. The first number influences the entire negotiation.

2. Ask about the budget

"To give you a suitable proposal: What budget range are we working with?"

3. Communicate value, not cost

Not: "My daily rate is $1,400" Instead: "For modernizing your API layer, I estimate 15 days at $1,400. This will save you an estimated 40 development hours per month."

4. Discounts only with trade-offs

"For a 6+ month engagement, I can offer $1,300 instead of $1,400."

5. If declined: Ask why

"May I ask what budget range you're working with? Perhaps we can adjust the scope."

Presenting Rates in Proposals

Option 1: Total Price Only (recommended)

Project scope: Cloud Migration (AWS)
Services: Conception, implementation, training
Investment: $21,000 (excl. tax)
Duration: 4 weeks

Option 2: Daily Rate with Estimate

Daily rate: $1,400 (excl. tax)
Estimated effort: 15-18 days
Cost range: $21,000 - $25,200

Option 3: Role-based

Senior Cloud Architect: $1,600/day × 10 days = $16,000
DevOps Engineer: $1,250/day × 8 days = $10,000
Project Management: flat rate $2,500
Total: $28,500 (excl. tax)

FAQ: IT Freelancer Rates

Should I charge travel expenses separately?

Yes. Standard arrangements:

• Travel time: 50% of daily rate
• Mileage: $0.67/mile (IRS rate 2026)
• Accommodation: at cost or per diem ($150-250)
• Alternative: All-inclusive daily rate for on-site days

How do I handle rate pressure?

1. Reduce scope: "For $1,100, I can deliver X and Y. Z would be separate."
2. Emphasize quality: "With my experience, you'll save two iteration cycles."
3. Decline: Sometimes no contract is better than a bad one.

When should I raise my rate?

• Annually by 3-5% (inflation)
• With new certifications/skills
• With high demand (utilization > 80%)
• After successful reference project

Conclusion: Your Rate is Negotiable

The market data in this article provides orientation – but ultimately you determine your own value. Calculate your minimum rate, know the market, and negotiate confidently.

Key takeaways:

1. Calculate your minimum rate with the formula
2. Know market prices for your niche
3. Communicate value, not hours
4. No discounts without trade-offs
5. Raise rates regularly

---

Creating professional proposals with proper pricing presentation? SimpleProposals helps IT freelancers create compelling project proposals in minutes – including various pricing formats.