How to Set Your Freelance Rate for International Clients
General information, not advice. This guide explains how things usually work. Fees, rules and products change and depend on your country and situation, so check the provider's or authority's own page before you act. See our disclaimer.
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Setting a freelance rate is hard enough when your client lives in your own city. When they live in another country, it gets more complicated. You have to think about currencies, transfer fees, platform commissions, taxes and the cost of chasing late payments across time zones. Many freelancers ignore these extras, quote a number that “feels right” and discover months later that they are earning much less than they thought.
This guide gives you a clear method to calculate a rate that covers your income goal, your costs and the extra expenses of working internationally, along with advice on which currency to quote in, how to present your price and when to raise it.
Why international rates are different
When you work with clients abroad, a number of costs appear that a local freelancer rarely faces:
- Currency conversion costs. The exchange rate margin and fees can take a noticeable share of every payment.
- Platform and payment fees. Marketplaces take a commission, and payment providers charge for receiving and withdrawing.
- Taxes in your country of residence. International income is usually still taxable income.
- Extra admin. Invoicing in another currency, tracking payments, time-zone calls and longer approval chains.
- Slower or riskier payment. Some clients pay late, and recovering money across borders is harder.
If your rate ignores these, you pay for them out of your own pocket.
Step 1: Set your target income
Start with the amount you want to keep, not the amount you want to bill. Decide how much net income you need for a year. Include your living costs, savings goals and a margin for slow months. Work from your own situation, not from what clients in other countries might pay.
Step 2: List your business costs
Add the costs of running your business each year, such as:
- Software and tools
- Equipment and internet
- Coworking space
- Health insurance
- Accounting and legal help
- Marketing and a website
- Training
- Bank, currency and payment fees
Do not forget costs that arrive once a year, and divide them by 12 so you can budget them.
Step 3: Estimate your billable hours
You will not bill every working hour. Admin, sales, emails, learning and unpaid revisions take up a large part of your week. Many freelancers can bill only a portion of their working time, so use a realistic number.
For example, if you plan to bill 30 hours a week for 46 weeks a year (allowing for holidays, sick days and slow periods), you have 1,380 billable hours a year.
From gross rate to net income
The money a client pays you is not the money you keep. Taxes and social contributions come out of it, and the amount depends on where you are a tax resident. The calculation is:
Gross income needed = target net income ÷ (1 − tax rate)
You then add your business costs to get the total revenue you need. If you are unsure which country will tax you, or how your income is treated when you move, read our guide on whether digital nomads pay taxes and speak to an adviser, since the tax rate you assume changes your rate noticeably.
A worked example (illustration only)
The numbers below are made up to show the method. Replace them with your own.
| Item | Amount |
|---|---|
| Target net income per year | $36,000 |
| Assumed tax and contributions | 20% |
| Gross income needed ($36,000 ÷ 0.80) | $45,000 |
| Business costs per year | $6,000 |
| Total revenue needed | $51,000 |
| Billable hours per year | 1,380 |
| Base hourly rate ($51,000 ÷ 1,380) | about $37 |
| Allowance for payment and currency fees (3%) | ÷ 0.97 |
| Rate to quote | about $38 per hour |
If your target is higher, your costs are higher or you can bill fewer hours, the rate rises. If you can bill more hours, it falls.
Step 4: Add the cost of fees and currency conversion
Fees are the part of an international rate that people most often forget. They can come from several layers:
| Cost layer | What to expect | How to handle it |
|---|---|---|
| Marketplace commission | Fiverr charges sellers a flat 20% commission and adds a buyer service fee of about 5.5%. Upwork uses a variable freelancer fee of 0% to 15% per contract, around 10% typical, since May 2025 | Build the commission into your price, or move repeat clients to direct contracts |
| Payment provider fees | Receiving, withdrawal and conversion fees vary by provider and country | Compare total costs and receive in the client’s currency where possible |
| Currency conversion margin | Banks and wallets add a margin on top of the real rate, and wallets can be especially expensive | Hold balances in several currencies and convert when it suits you |
| Transfer and intermediary fees | Bank transfers can lose money along the way | Ask the client to cover the sending fees, or add a small buffer |
The simplest way to deal with these is to add a percentage to your base rate, as in the example above, and review it once you see your real costs for a few months. To keep conversion costs low, consider an account that lets you receive and hold several currencies, and compare the total cost of the options before you decide.
Choose a pricing model
The same income target can be turned into different pricing models. Each has advantages and drawbacks.
| Model | How it works | Pros | Cons |
|---|---|---|---|
| Hourly | You bill for the hours worked | Simple, fair for unclear scope | Penalises efficiency, clients may scrutinise hours |
| Day rate | A fixed price per working day | Easy to plan, good for consulting | Less flexible for small tasks |
| Fixed project price | A set price for a defined result | Rewards efficiency, easier for clients to approve | Risk if scope grows |
| Retainer | A monthly fee for a set amount of work or availability | Predictable income | Needs clear limits and renewals |
| Value-based | A price linked to the value you create for the client | Highest earning potential | Needs confidence and a clear outcome |
For international clients, fixed prices and retainers often work better than hourly billing, because the client sees one clear number and you avoid timesheet disputes across time zones. Use your hourly figure to check that any fixed price still covers your costs and income goal.
Which currency should you quote in?
Your quote currency changes how much risk each side carries.
- A widely used, stable currency such as US dollars or euros is common in international freelancing, and many clients find it easy to understand.
- The client’s currency makes life easier for them and may help you win the job, but exchange rate swings can affect your income.
- Your local currency is simpler for you, but can create confusion and unpredictable costs for the client.
Whichever you choose, state it clearly in the quote, contract and invoice. For long projects, consider a clause that adjusts the price if the exchange rate moves beyond an agreed range, or invoice in stages so you are not exposed for months.
Should you charge less to clients in lower-income countries?
It is a common question. A client in a lower-income country may have a smaller budget than one in a high-income country, and some freelancers adjust their prices to match. A few principles help:
- Price by the value of your work, not by the client’s location. A business that earns money from your work can usually pay a fair price.
- Offer packages instead of discounts. A smaller scope at a lower price is better than the same work at a discount.
- Do not discount without a reason. Cheap work attracts clients who value it less.
- Keep your minimum. If a client cannot meet your minimum rate, say no politely.
If you live in a country with a lower cost of living, do not assume you should charge less than the market for your skills. The market for your service, not your rent, sets the price.
Payment terms and methods
A good rate only helps if you actually get paid. Agree these points in writing before work starts:
- Deposit. Ask for 30% to 50% upfront, especially for new clients.
- Milestones. Split larger projects into stages, each with its own payment.
- Payment terms. Choose a due date such as 14 or 30 days after the invoice.
- Late fees. Include a clause for late payment.
- Who pays the fees. Decide who covers transfer and platform charges.
- Payment method. Offer the cheapest option for you, such as local account details in the client’s currency.
For a full guide to the available routes and how to avoid problems, see how to get paid by international clients.
How to present your rate to a client
Be clear, specific and confident. Here is a simple template:
Hi [Name],
Thanks for sharing the details of the project. Based on the scope we discussed, my fixed price is [amount] [currency], which includes [what is included] and [number] rounds of revisions.
Payment terms: 40% upfront, 60% on delivery, due within 14 days of invoice. Bank transfer fees are covered by the sender.
If the scope changes, I will send an updated quote before starting any extra work.
Let me know if you have any questions and I will be glad to start as soon as the deposit is received.
Avoid apologising for your price or offering a discount before the client has asked. If they push back, adjust the scope rather than the price.
When and how to raise your rate
Review your rate at least once a year. Consider raising it when:
- You are fully booked or turning down work.
- Your costs or taxes have risen.
- Your skills and results have improved.
- Exchange rates have moved against you for a long time.
Apply new rates to new clients first. For existing clients, give 30 to 60 days’ notice and explain the change briefly. Many clients will accept an increase from someone who has delivered good work.
Common mistakes to avoid
- Setting a rate based on what others charge, without checking your own costs.
- Ignoring taxes and quoting a rate that leaves you short at the end of the year.
- Forgetting fees and currency conversion, which quietly reduce your income.
- Counting every working hour as billable.
- Quoting in a currency you cannot manage without a plan for conversion.
- Working without a deposit or contract with a new international client.
- Discounting too quickly.
- Never reviewing your rate.
Frequently asked questions
How do I set a freelance rate for international clients?
Start with your target net income, add taxes and business costs, divide by your realistic billable hours, and add a margin for fees and currency conversion. Then check it against the value you deliver.
Should I charge in my currency or the client’s?
Either can work. Many freelancers use a widely used stable currency such as USD or EUR, or the client’s own currency, as long as the rate covers conversion costs and the quote is clear.
Should I charge differently depending on the client’s country?
Not automatically. Price by the value of your work, and use packages with different scopes rather than simple discounts.
Should I charge hourly or per project?
For international clients, fixed prices and retainers are often easier to manage, as long as the price still covers your hours, costs and fees.
How do I deal with exchange rate changes?
Quote in a stable currency, invoice in stages for long projects, and consider a clause that lets you adjust the price if the exchange rate moves a lot.
How often should I raise my rates?
Review them at least once a year, and raise them when your costs, skills or demand increase.
Final thoughts
A good international rate is not a guess. It comes from a clear income target, an honest estimate of your costs, taxes and billable hours, and a buffer for fees and currency swings. Put it in writing with a deposit and clear terms, review it every year and do not apologise for it.
Once your rate covers your life and your business, put part of every payment aside. Our guide to how to save and invest as an expat shows how to turn a good income into a safety net.
This article is general information, not tax or financial advice. Fees and rules change and vary by country. Information reviewed October 5, 2026.
Sources and further reading
Official pages and primary sources where you can check the rules, fees and rates discussed in this guide. They are updated by their publishers, so check them for the current figures before you decide.
- Euro foreign exchange reference rates (European Central Bank)
- Income taxes abroad (Your Europe (European Union))
- Wise pricing and fees (Wise)
- PayPal business fees (PayPal)
