What each hour has to cover
A price that only matches what others charge can still lose money. Start from your own costs. For a virtual assistant business, each hour carries:
- Software or tools per client
- Card and payment fees, as a share of the price
Then a share of the costs you pay every month, however much you sell:
- Software and subscriptions
- Professional liability insurance
- Phone and internet
- Ongoing marketing
- Training and memberships
- Bookkeeping and tax preparation
And two things most first prices leave out: your own pay, and money set aside for income and self-employment tax on the profit.
Three prices worth knowing
- The price that covers costs. Monthly costs shared across your expected hours, plus the cost of each hour, grossed up for card fees. Below it, every month loses money.
- The price that pays you. The same, with your pay before tax added to the monthly costs. This is the real minimum if the business is your income.
- A recommended price. The price that pays you plus a profit cushion for slow months, repairs and growth.
The quick check above works out all three from your numbers. The pricing calculator shows each step of the formula.
Check your price against your area
Prices vary a lot by town, so we don’t publish averages. Collect real ones instead: ask three or more local businesses for a quote the way a customer would, and note what each includes. Then answer these:
- What do local competitors charge? Ask for quotes the way a customer would.
- How long does each hour take you, including travel and preparation?
- How many hours can you deliver in a week at a quality you’re proud of?
If the price that pays you is above everyone you found, that’s worth knowing before you start. Lower a cost, sell more each month, or offer something customers will pay more for.
Pricing mistakes to avoid
- Some clients will want help with their books or taxes. Refer that work to a qualified provider rather than taking it on.
- Pricing as if every working hour is billable. Selling, admin and travel take real time, and your rate has to pay for it.
- Leaving out a minimum charge, so short bookings cost you more than they earn.
Next steps
- Starting a virtual assistant business: the work, customers, licenses and how to test demand.
- Test a full virtual assistant plan: startup cash, the ramp-up, a stress test and a decision report.
- How to calculate your break-even point
- How to set your freelance rate
- Considering a virtual assistant franchise? Compare the fees and long-term earnings with going independent.
General information, not financial, tax or legal advice. See our disclaimer.
