Freelance rate calculator
How you price a project can change what it pays as much as the price itself, and the difference only shows once extra hours start creeping in. Give the calculator your target hourly rate, your hour estimate, how much your projects usually overrun and what the outcome is worth to the client, and it prices the work hourly, by the day, as a fixed fee and on value. For each one it shows the true hourly rate, so you can choose the model that guards your time best.
True hourly rate for each pricing model
What each model earns for every hour you really put in, with your usual overrun included. Your target rate is marked for comparison.
Your fixed fee as the hours grow
The fixed quote never changes while the real hours do. This is the risk you accept whenever you quote a fixed fee.
| Overrun | Real hours | Hourly billing earns | Fixed price earns | Fixed price per hour |
|---|
How the pricing models are compared
All models start from the same estimate. What differs is who pays for extra hours when a project overruns: the client with hourly and day rates, and you with fixed and value pricing.
Probable real hours
Your estimate plus your normal overrun.
real hours = estimate × (1 + overrun)
Hourly
Every real hour billed at your rate.
hourly = rate × real hours
Day rate
Real hours rounded up to full days, at a slightly discounted day rate.
day rate = rate × hours per day × (1 − discount)
Fixed fee
Quoted on the estimate plus a buffer, and paid the same however long the work takes.
fixed = rate × estimate × (1 + buffer)
Value-based
A share of what the result is worth to the client.
value price = client value × your share
True hourly rate
Each price divided by the real hours.
effective rate = price ÷ real hours
Freelance pricing FAQ
Is hourly or fixed pricing better for freelancers?
Hourly protects you against scope creep because every extra hour is paid. A fixed fee rewards fast work and is easier for clients to sign off, but extra hours come out of your pocket. If you estimate well and add a buffer, fixed fees usually earn more per hour.
What is an effective hourly rate?
The money you earned divided by the hours you really worked. A $3,000 fixed project you expected to take 30 hours pays $100 an hour, but if it takes 45 hours it paid about $67. The calculator does this for every model on the same job.
How big a buffer should go on a fixed price?
Compare estimated and actual hours on past projects. Many freelancers run 20 to 40 percent over their first guess, so a buffer at least as large as your usual overrun keeps the effective rate on target.
How does value-based pricing work?
You set the price by what the project is worth to the client, not by your hours. If a new checkout process will add $100,000 a year in sales, charging 10 percent of year one is $10,000, however long it takes. It works best when the result can be measured.
How should I set a day rate?
Multiply your hourly rate by the hours in a working day, then decide whether to give a small discount for booking whole days. Day rates suit work that fills a day, like workshops or on-site help. Partial days are usually rounded up, which protects your time.
Which hourly rate should I start with?
The one that meets your income goal after tax, expenses and unbilled time; our freelance hourly rate calculator works it out. This tool then shows which pricing approach gets you closest to that rate, or past it.