Project Rate Estimator
Is that fixed-price gig worth it? Calculate your real hourly rate.
How This Tool Works
The Freelance Project Rate Estimator helps you de-risk fixed-price contracts. While clients love the certainty of a fixed quote, freelancers often end up earning less than their minimum wage because they fail to account for the "unknown unknowns."
This tool converts your fixed price into an effective hourly rate. It forces you to look at a project through the lens of a "Risk Buffer"—an insurance policy against scope creep and revisions—to ensure the project remains profitable even if it takes 20% longer than expected.
How to Use the Estimator
- Project Price: Enter the total amount you plan to bill the client.
- Estimated Hours: Be realistic. Include research, communication, and administrative tasks, not just the "doing."
- Risk Buffer: Use the slider to add a cushion. For well-defined tasks, use 10-15%. For vague or complex projects, use 30-50%.
- Target Rate: Enter the minimum hourly rate you need to earn to stay profitable.
Example Calculation
If you quote $5,000 for a project you think will take 40 hours:
- Nominal Rate: $125/hr
- With 25% Risk Buffer: You might actually work 50 hours.
- Risk-Adjusted Rate: $100/hr
If your target is $110/hr, this project is too risky at $5k.
Why This Tool Is Accurate
We believe "buffer time" is the most neglected metric in freelance business planning:
- Scope Creep Modeling: Research shows that fixed projects typically take 1.2x to 1.5x longer than initially estimated. Our buffer logic reflects this reality.
- Profitability Verdicts: The tool doesn't just give you a number; it compares the risk-adjusted rate to your target to give a "Go/No-Go" verdict.
- Inverted Math: By starting with the price and working backward to the rate, it prevents you from being blinded by a "big" total number.