Freelance Cost Plus Pricing Calculator
Estimate a freelance project price by adding your costs, overhead and desired profit margin.
Overview
This freelance cost plus pricing calculator helps you estimate what to charge by combining your billable hours, internal hourly cost, direct project expenses, overhead and target profit margin. It is useful for pricing fixed-fee projects and checking the equivalent hourly rate.
How it works
The calculator first works out your labor cost by multiplying billable hours by your base hourly cost. It then adds any direct project expenses and applies an overhead percentage to estimate your full cost. Finally, it adds your target profit margin to produce a recommended project price, and divides that total by billable hours to show the equivalent client hourly rate.
How to use this calculator
- 1Enter your estimated billable hours for the project.
- 2Add your internal hourly cost for the time you will spend working.
- 3Include any direct project expenses you expect to pay.
- 4Set an overhead percentage to cover general business costs.
- 5Enter your target profit margin and review the recommended project price and hourly rate.
Example Calculation
Estimated billable hours
20
Your base hourly cost
$35
Direct project expenses
$50
Overhead percentage
15%
Target profit margin
20%
Pricing mode
project
Recommended project price
$1,035.00
For 20 billable hours at a base cost of 35 per hour, with 50 in direct expenses, 15% overhead and a 20% profit margin, the recommended project price is about 1035 and the equivalent hourly rate is about 51.75 per hour.
Frequently asked questions
What does this calculator estimate?
It estimates a freelance price by adding labor cost, project expenses, overhead and a profit margin.
What is cost-plus pricing for freelancers?
Cost-plus pricing starts with your estimated costs and then adds a profit amount or margin to set your price.
Should I include non-billable time in my hourly cost or overhead?
Many freelancers include non-billable time in their hourly cost, overhead percentage, or both, depending on how they price their work.
Does this calculator include tax or sales tax?
No. It does not automatically include tax. If you need to recover tax-related costs, include them in your pricing separately where appropriate.
Can I use this for fixed-fee projects?
Yes. It is especially useful for fixed-fee projects because it converts your estimated costs into a recommended total project price.
Why compare the project price to an hourly rate?
The equivalent hourly rate helps you sense-check whether the fixed project fee is high enough for the time involved.
Explore Related Calculators
Assumptions and warnings
Assumptions
- This calculator uses a simple cost-plus pricing method.
- Overhead is applied as a percentage of labor and direct project costs.
- Profit margin is added on top of your estimated total cost rather than calculated as a markup from market rate.
- Results are estimates and do not include taxes unless you add them into your costs or pricing separately.
Warnings
- This calculator provides an estimate only and is not financial advice.
- Review your market, scope, revisions and contract terms before setting a final freelance price.