How to use freelance project pricing calculator
- Estimate time and value of each hour.
- Include project and subcontracting costs.
- Apply a contingency for uncertainty.
- Choose a margin target and review price and profit.
Example
With $1,000 estimated total cost and a target 25% margin, the selling price is $1,333.33, not $1,250.
How the calculation or document works
Cost = hours × internal hourly rate + expenses + subcontractors; protected cost = cost × (1 + contingency %); quote = protected cost ÷ (1 − margin %).
Frequently asked questions
Why divide by one minus margin?
Gross margin is profit divided by selling price; markup divides profit by cost.
Does tax count as profit?
No. Optional sales tax is displayed on top of the quote, not included in project profit.
Related tools
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