WORKED EXAMPLEFreelance quote & project profit: a worked example
With proposed fixed project price 1,500, alternative billing rate per hour 50, delivery time (hours) 20, revision time (hours) 5, unpaid admin time (hours) 3, project expenses 100, fee on invoiced revenue (%) 10, target earnings per working hour 40, the minimum fixed quote is $1,355.56.
Inputs| Proposed fixed project price | 1,500 |
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| Alternative billing rate per hour | 50 |
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| Delivery time (hours) | 20 |
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| Revision time (hours) | 5 |
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| Unpaid admin time (hours) | 3 |
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| Project expenses | 100 |
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| Fee on invoiced revenue (%) | 10 |
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| Target earnings per working hour | 40 |
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Results| Minimum fixed quote | $1,355.56 |
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| Fixed-price profit | $1,250.00 |
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| Fixed effective hourly earnings | $44.64 |
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| Hourly-contract profit | $1,025.00 |
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| Hourly effective earnings | $36.61 |
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| Total hours | 28 hours |
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| Quote above/below minimum | $144.44 |
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THE METHODHow it works
Enter the proposed fixed project price and an hourly alternative, then count delivery, revision and admin time separately. The calculator subtracts the entered fee and project expenses from each contract's revenue. It divides the remaining profit by all your working hours to show effective earnings. The minimum fixed quote works backwards from your target earnings after those costs, before personal tax. Change the revision estimate to see how an expanding scope changes the quote you need. The hourly scenario bills delivery and revision time; admin remains unpaid in both scenarios.
FormulaTotal hours = delivery + revisions + admin. Fixed profit = quote × (1 − fee%/100) − expenses. Minimum quote = (target hourly earnings × total hours + expenses) ÷ (1 − fee%/100). Hourly profit = hourly rate × (delivery + revision hours) × (1 − fee%/100) − expenses.
ASSUMPTIONSAssumptions and limits
- The same delivery, revision and admin hours apply to both scenarios. Only delivery and revision hours are billed in the hourly scenario.
- The percentage fee applies to gross invoiced revenue. Project expenses are then deducted once from each scenario.
- All invoices are assumed paid in full. Personal taxes, late payments, bad debts and ongoing business overheads are excluded unless included in your expenses.
- The target is earnings per total working hour after the entered costs. It is not a market-rate estimate or a guarantee of client demand.
- All amounts use one chosen currency. Changing the currency label does not convert values. Example prices and fee percentages are illustrative.
- Results are estimates based on the inputs and assumptions on this page, not professional advice.
- Try this: in the example above, a 10% rise in “Target earnings per working hour” changes the result by +9.2% and a 10% rise in “Delivery time (hours)” changes the result by +6.6%. Use “Save scenario A”, change one input and compare the two results side by side.
QUESTIONSFrequently asked questions
How is the result of the “Freelance quote & project profit” calculated?
Total hours = delivery + revisions + admin. Fixed profit = quote × (1 − fee%/100) − expenses. Minimum quote = (target hourly earnings × total hours + expenses) ÷ (1 − fee%/100). Hourly profit = hourly rate × (delivery + revision hours) × (1 − fee%/100) − expenses. Enter the proposed fixed project price and an hourly alternative, then count delivery, revision and admin time separately. The calculator subtracts the entered fee and project expenses from each contract's revenue. It divides the remaining profit by all your working hours to show effective earnings. The minimum fixed quote works backwards from your target earnings after those costs, before personal tax. Change the revision estimate to see how an expanding scope changes the quote you need. The hourly scenario bills delivery and revision time; admin remains unpaid in both scenarios.
What does the worked example show?
With proposed fixed project price 1,500, alternative billing rate per hour 50, delivery time (hours) 20, revision time (hours) 5, unpaid admin time (hours) 3, project expenses 100, fee on invoiced revenue (%) 10, target earnings per working hour 40, the minimum fixed quote is $1,355.56. Fixed-price profit: $1,250.00; Fixed effective hourly earnings: $44.64; Hourly-contract profit: $1,025.00; Hourly effective earnings: $36.61; Total hours: 28 hours; Quote above/below minimum: $144.44.
What assumptions and limits apply?
This is an estimate based on the inputs and assumptions shown on this page, not professional advice. Check anything with financial, health or safety consequences independently.
Is my data private?
Yes. Calculations run in your browser and your numbers are not sent to a server. A share link contains the inputs you choose to share, so check it before sending it to anyone.
Can I use my own currency?
Yes. Pick from 33 currencies and the amounts are labelled to match. The selector does not convert between currencies, so enter prices in your own currency.
How do I calculate a minimum freelance project quote?
Multiply your target hourly earnings by delivery, revision and unpaid admin hours combined, add project expenses, then divide by one minus your fee percentage. This produces a quote that meets the target under your entered assumptions, before personal tax.
Why is my effective hourly rate lower than my quoted hourly rate?
Your billing rate covers only billed hours. The effective rate spreads profit after fees and expenses across all working hours, including unpaid admin. More unpaid time or higher costs can reduce earnings even when the client-facing rate stays unchanged.
How are revision hours treated in each contract?
Revision time adds to total working hours in both scenarios. A fixed-price client pays the original quote, while the hourly scenario bills revisions at the hourly rate. If your hourly contract includes free revisions, move that time to unpaid admin hours.
Does the calculator use a platform's current freelancer fee?
No. Enter the fee that applies to your contract. The default percentage is an example, and the calculation uses one percentage on the entire gross invoice. Fixed charges can be included in expenses, provided you do not count them twice.
What does a quote below the minimum mean?
It means the proposed quote falls short of your chosen earnings target after the entered time, fees and expenses. It does not necessarily mean the project loses money. Check the separate profit result, then adjust price, scope or costs.
Can I include income tax and business overheads?
The result is before personal income tax. You can allocate business overheads to project expenses, but keep direct expenses and overhead allocations separate in your records. This calculator does not determine your tax liability or deduct tax automatically.