How to set your hourly rate as a freelancer in Switzerland

Setting your hourly rate is one of the trickiest decisions you'll make when you go freelance. Too low, and it won't cover your expenses or your vacation. Too high, and it can scare off your first clients. Between AVS contributions, non-billable days, and the pressure of competition, it's hard to know where to start.

Here's a simple four-step method for calculating an hourly rate that lets you live off your business, not just survive it.

Why guessing your rate costs you

Many freelancers set their price by copying a competitor or guessing "what sounds reasonable." The problem is that number ignores your real expenses: social contributions, insurance, equipment, and the time spent on admin and prospecting, none of which you ever bill.

A badly calculated rate often means 50-hour weeks for a net income lower than an employee's. Doing the math once, properly, saves you from that trap.

Step 1: Define the income you're aiming for

Start with the net annual income you need to live comfortably. Base it on your former salary, industry benchmarks, or your own goals. Don't go below what you'd accept as an employee. Freelancing means more risk, not less income.

Step 2: Add up all your expenses

List everything your business needs to cover before you see a net income:

• Fixed costs: workspace rent, insurance (professional liability, loss of income), software subscriptions.
• Variable costs: equipment, ongoing training, marketing, travel.
• Social contributions: AVS/AI/APG (about 10% of income for the self-employed), optional 2nd pillar, 3rd pillar.
• Tax provision: set aside enough to cover your annual tax bill.

Add these up to get your total annual expenses.

Step 3: Count your actually billable hours

This is the step most freelancers underestimate. A year has about 52 weeks, but you don't work all of them, and not every hour worked is billable.

Subtract:

• Vacation and public holidays (roughly 5 to 7 weeks).
• Sick days and other unexpected time off.
• Time spent on admin, bookkeeping, and prospecting, which can eat up 20 to 30% of your time.

A realistic pace often lands around 25 to 30 billable hours per week over 44 to 46 working weeks, or roughly 1,100 to 1,350 billable hours per year.

Step 4: Apply the formula

Once you have these three numbers, the calculation is simple:

Hourly rate = (Target net income + Annual expenses) ÷ Billable hours per year

A worked example

• Target net income: CHF 80,000
• Annual expenses (including social contributions): CHF 20,000
• Revenue needed: CHF 100,000
• Billable hours: 1,125 per year

Hourly rate: 100,000 ÷ 1,125 = about CHF 89/hour

This number is your floor, not your target. Add a margin for the unexpected and for growing your business.

Where market rates stand in Switzerland

These ranges vary widely by region, experience, and specialization, but they give you a benchmark:

• Trades and manual services: CHF 60–120/hour
• Digital marketing and communications: CHF 80–200/hour
• Web development and IT: CHF 65–150/hour and up

If your calculation puts you well below these ranges, that's usually a sign your expenses or your billable hours are off, not that the market can't pay that price.

Don't undercut your rate out of fear of losing clients

The fear of scaring off clients pushes a lot of freelancers to underprice from day one. That instinct is expensive. It's far harder to raise your rates with existing clients than to set them right from the start.

To justify your rate instead of just accepting whatever sticks:

• Highlight the results you deliver for clients, not just the time you spend.
• Document your expertise and your specialization.
• Review your rate every year, as your skills and reputation grow.

Bill your hours without losing time to it

Once your rate is set, you still have to invoice properly. A tool like Factura generates Swiss-compliant invoices with a built-in QR-invoice, calculates your amounts automatically, and shows you at a glance what's still outstanding.

The real test isn't your hourly rate, it's your net income at the end of the year. Recalculate as soon as your expenses or your workload change.