Use AI to Find Your Minimum Hourly Rate Without the Stress

You didn't start your writing business to become a spreadsheet sorcerer. But here we are—juggling client work, admin chaos, and wondering, "Am I even charging enough?"

That question haunts most freelancers. One of the most empowering moves you can make as a writer is getting crystal clear on your minimum hourly rate—not what a peer on Twitter charges, not what the last client paid without flinching. Your rate. Rooted in your life, your business, and your boundaries.

And yes, AI can absolutely help you figure this out without you needing to love math or endure endless rate debates in Facebook groups.

Why You Need a Minimum Hourly Rate (Even If You Don't Bill Hourly)

Even if you charge per word, flat fees, or packages, your minimum hourly rate is your business's financial foundation. It answers:

• What's the least I can charge and still run a sustainable business?
• How much time do I really have for client work each week?
• Are my packages priced in a way that supports my life—not just my clients?

Knowing your baseline protects you from burnout pricing. It gives you language to explain your value, helps you scale without resentment, and lets you say "no" to misaligned opportunities with confidence.

Step One: Gather Your Numbers

Before asking AI to help, collect these essential figures:

1. Your monthly business expenses (software, subscriptions, coworking, resources, etc.)
2. Your desired take-home pay (what you actually want to pay yourself each month)
3. Your average number of billable hours per week (not 40—be honest about what's realistic)
4. Weeks you plan to work per year (because planned rest isn't optional)

Got those? Let's move on.

The Simple Prompt: Let AI Do the Math

If you want a straightforward answer and have your numbers ready, drop this into ChatGPT or your preferred AI tool:

I'm trying to find my minimum hourly rate as a freelance writer. My monthly business expenses are $[X], and I want to take home $[Y] each month. I have about [Z] billable hours per week and plan to work [A] weeks per year. Can you calculate the minimum hourly rate I need to charge to meet these goals?

It'll give you a number—and a breakdown. No calculator app required.

Want a More Strategic View? Try This Complex Prompt

If you're planning for growth, thinking about profit margins, or adding time off, try this:

Help me calculate my minimum sustainable hourly rate as a freelance writer. Here are my details:
- Monthly business expenses: $[X]
- Desired monthly take-home pay: $[Y]
- Annual savings goal: $[Z]
- Team/contractor expenses: $[A]
- Billable hours per week: [B]
- Weeks worked per year: [C]

Also, please factor in an additional 30% buffer for taxes and business emergencies. Return the minimum hourly rate I should charge, and show me how that number would need to change if I dropped to 20 hours/month or added 2 weeks of vacation.

This gives you dynamic visibility—perfect if you're planning for a quieter summer or considering hiring help.

What Happens When Writers Run These Numbers

I use a similar prompt with my coaching clients. One client knew what she needed to make each month, and she was meeting that number, but she had no clue how much she needed to make as a minimum.

So I started with a series of simple questions:

• How much do you want to make a year?
• How many hours do you want to work each week?
• How many of those hours will be billable hours? (I recommend at least 25% of your working hours are focused on working on your business instead of in your business.
• How many weeks off do you want each year? (I recommend a minimum of 4.)

She told me she wanted to work a maximum of 20 hour a week, which meant she would have 15 billable hours. She was shocked to find out if she raised her rate by $25 an hour (from what we calculated she'd been charging) she would actually be able to exceed her goals with only 10 billable hours a week.

Knowledge and clarity are important when you're looking at your business finances.

The Truth About Your Numbers

When I coach freelance writers through this exercise, three things typically happen:

1. Sticker shock: Most discover they've been undercharging by 30-50%
2. Time clarity: They realize they've been overestimating their billable hours
3. Permission: They finally feel justified in raising rates or saying no to projects that don't align

One writer I worked with discovered her minimum sustainable rate was $85/hour—yet she'd been charging $45 for years. By incrementally raising her rates and restructuring her packages (without changing her hourly commitment), she doubled her income within six months and started attracting better clients.

Remember These Pricing Truths

1. This isn't about perfection. It's about getting a solid starting point so you're not pricing from vibes or desperation.
2. Your minimum rate is not your ideal rate. It's the floor, not the ceiling. Once you know it, you can build up with packages, value-based pricing, and scope that makes sense.
3. You don't need to justify your rate with receipts. Your clarity is enough. When you believe your work is valuable, your rates start reflecting that.

Why This Matters So Much

Too many writers avoid this math because it feels hard, scary, or "not creative." But here's the reframe: your pricing is part of your creative freedom. Knowing what you need to charge unlocks the business (and life) you're working toward.

And thanks to AI? You don't need to be good at math to be good at business.

Your Turn: Find Your Number, Then Reflect

Here's your invitation:

• Run one of the prompts above in ChatGPT (or your AI tool of choice)
• Look at the number. Does it feel doable? Alarming? Clarifying?
• Ask yourself: What needs to shift—my pricing, my hours, or my goals?

Take that number and sit with it. It's not just about charging more—it might be about working differently. Maybe you need fewer, better clients. Maybe your packages need restructuring. Or maybe you simply need to own your value.

Whatever you discover, remember this: Your worth isn't determined by an AI calculation—but your business sustainability absolutely depends on charging rates that honor your expertise, time, and financial needs.