How to use this tool
Enter your desired annual income, monthly business expenses, tax percentage, billable hours per week, vacation weeks and profit margin. Your rates update instantly with every change โ no submit button needed.
Once you have your baseline rate, compare it against the wider market. Your calculated rate protects your income and business costs โ the market tells you how to position and package it.
Pricing tips
- โNever base your rate only on employee salary maths.
- โInclude admin, sales, marketing and quiet weeks in planning.
- โFor fixed projects, add a scope buffer and define revision limits.
- โReview prices every few months as demand and expenses change.
- โA higher rate with fewer clients is often healthier than a low rate with many.
Key pricing formula
Annual income + Annual expenses
รท (1 โ tax rate)
ร (1 + profit margin)
รท Annual billable hours
= Your hourly rate
รท (1 โ tax rate)
ร (1 + profit margin)
รท Annual billable hours
= Your hourly rate
Related Tools
How to Price a Freelance Project
Project pricing converts your day rate into a fixed fee for defined work. The formula: Estimated days ร Day rate ร Scope buffer. A 15โ20% scope buffer is not padding โ it is professional insurance against the scope creep that affects almost every project.
The three rules of project pricing
- 1Scope everything before quoting. A project quote without a detailed brief is a guess. Clarify deliverables, revision rounds, formats, timelines and what is explicitly excluded.
- 2Add a scope buffer, always. Budget 15โ20% additional time for communication, revisions, unexpected complexity and client feedback cycles.
- 3Define change request terms. Anything outside the original scope is a new quote. Include this in your contract before starting.
| Project Type | Typical Duration | Buffer Recommendation |
|---|---|---|
| Landing page design | 2โ4 days | 15% |
| Brand identity | 5โ10 days | 20% |
| Web development (small site) | 5โ15 days | 20% |
| Content strategy + execution | 3โ8 days | 15% |
| Technical audit / consultancy | 1โ3 days | 10% |
Project Pricing FAQs
Should I charge project rates or hourly rates? +
Project rates are better for defined deliverables โ clients prefer knowing the total cost upfront, and you benefit if you work efficiently. Hourly suits open-ended support, consulting or work where scope genuinely cannot be defined. Many freelancers use project rates for new clients and retainers for ongoing relationships.
What scope buffer percentage should I use? +
15% is the minimum for straightforward projects with a clear brief. Use 20โ25% for projects with multiple stakeholders, unclear requirements, or clients who tend to be revision-heavy. For complex technical or regulatory projects, 25โ30% is not excessive.
How do I handle scope creep once a project starts? +
Issue a change request document for any work outside the original brief. State the additional time, cost, and impact on the timeline. Frame it as necessary for quality โ not as an obstacle. Have a change request clause ready in your standard contract before any project begins.
When should I ask for a deposit? +
Always. A 25โ50% deposit before starting protects you from clients who disappear mid-project and ensures genuine commitment. For projects over ยฃ5,000, milestone payments (25% on approval, 50% mid-project, 25% on delivery) reduce financial exposure further.
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