================================================================ FREELANCE HOURLY VS. PROJECT RATE CALCULATOR SoloStack — solostack.madethis.app ================================================================ Free to download and use. No email required. ================================================================ ---------------------------------------------------------------- SECTION 1: HOURLY RATE BASELINE CALCULATOR ---------------------------------------------------------------- Use this to find your minimum hourly rate before calculating any project rate. Never skip this step. FILL IN YOUR NUMBERS: --------------------- Target annual take-home income: $___________ Billable hours per week: ___________ (Realistic hours billed to clients, NOT hours at your desk. Most full-time freelancers bill 20-25 hrs/week.) Weeks worked per year: ___________ (Subtract vacation, holidays, slow weeks. Typical: 44-48 weeks.) Utilization rate (as a decimal): ___________ (The % of working hours you actually bill. Entry: 0.60, Established: 0.70-0.80, Expert: 0.85+) FORMULA: -------- Billable hours/year = (hours/week × weeks/year) Baseline rate = Target income ÷ Billable hours/year Overhead-adjusted rate = Baseline × (1 + overhead %) (Overhead includes: self-employment tax ~25-30%, health insurance, software, equipment. Typical overhead: 30-35%) Floor rate = Overhead-adjusted rate × (1 + profit margin %) (Add 15-20% profit margin — this covers reinvestment and slow months, it is NOT a luxury.) WORKED EXAMPLE — $80K target: ------------------------------ Target income: $80,000 Hours/week: 22 hours Weeks/year: 46 weeks Billable hours/year: 22 × 46 = 1,012 hours Utilization rate: 0.75 (adjusted: 1,012 × 0.75 = 759 hrs) Baseline rate: $80,000 ÷ 1,012 = $79.05/hr Overhead-adjusted (32%): $79.05 × 1.32 = $104.35/hr Profit margin (15%): $104.35 × 1.15 = $120.00/hr MINIMUM HOURLY RATE: ~$120/hr MINIMUM DAY RATE: ~$900/day (× 7.5 hrs) Your numbers: ------------------------------ Billable hrs/year: ___________ Baseline rate: $___________/hr Overhead-adjusted: $___________/hr Floor rate: $___________/hr ← Your minimum ---------------------------------------------------------------- SECTION 2: PROJECT RATE FORMULA ---------------------------------------------------------------- Use your floor rate from Section 1 as the input here. FORMULA: -------- Project Rate = (Estimated hours × Hourly baseline) + 20% buffer + Complexity premium (10-25%) STEP BY STEP: Step 1 — Estimate hours: Break the project into tasks. Estimate each task separately. Add a revision column (see revision buffer rule below). Task Hours Revisions Total ------------------------- ------ --------- ------ ___________________ _____ _____ _____ ___________________ _____ _____ _____ ___________________ _____ _____ _____ ___________________ _____ _____ _____ Discovery/kickoff _____ — _____ Client comms/admin _____ — _____ TOTAL ESTIMATED HOURS: _____ Step 2 — Apply your hourly baseline: Estimated hours × $___/hr = $___________ Step 3 — Add 20% buffer: Step 2 result × 1.20 = $___________ (This covers scope drift, unclear requirements, unexpected complexity, and admin overhead.) Step 4 — Add complexity premium: Rate the project on these 4 factors (1 = low, 5 = high): Factor Rating (1-5) ---------------------------- ------------ Scope clarity (lower = higher _____ premium — vague briefs cost you) Stakeholder count (more sign- _____ off layers = more coordination) Technical difficulty (niche _____ skill, specialized knowledge) Turnaround pressure (rush work _____ displaces other clients) Total score: _____ / 20 Score 1-8: Use 10% complexity premium Score 9-14: Use 17% complexity premium Score 15-20: Use 25% complexity premium Your premium: ____% Step 3 result × (1 + premium%) = $___________ Step 5 — Round to a clean number: Clients trust rounder numbers. Round to the nearest $50 or $100. $1,553 → quote as $1,500 or $1,600. YOUR PROJECT RATE: $___________ REVISION BUFFER RULE: --------------------- Add 3-5 hours for EVERY revision round included in the project. If you offer 2 revision rounds: add 6-10 hours to your estimate. If you offer 3 rounds: add 9-15 hours. Never quote a flat revision policy without pricing it in. UNKNOWN UNKNOWNS RULE: ---------------------- Never quote a fixed project price without a clear written brief. If a client can't tell you exactly what they need, you cannot accurately estimate the time. In that case: Option A — Charge hourly until the brief is defined Option B — Charge for a paid discovery/scoping session first Option C — Quote a range with a clearly defined scope gate ---------------------------------------------------------------- SECTION 3: DECISION MATRIX — HOURLY OR PROJECT? ---------------------------------------------------------------- Score each criterion 1, 2, or 3 based on the descriptions. Total score determines the recommended pricing model. CRITERION 1: Project clarity 1 = Scope is vague, requirements keep changing, client isn't sure what they want yet 2 = Moderate clarity — general direction but details TBD 3 = Crystal clear scope, detailed brief, defined deliverables Score: _____ CRITERION 2: Client type 1 = New client, no track record with you, high uncertainty 2 = Referred client or known quantity 3 = Repeat client with established trust and clean feedback Score: _____ CRITERION 3: Revision risk 1 = High revision risk — creative concept work, subjectivity involved, client has final say on "feel" 2 = Moderate — some creative judgment, some defined specs 3 = Low revision risk — technical work, clear acceptance criteria, objective deliverable Score: _____ CRITERION 4: Your speed advantage 1 = This type of work still takes you as long as anyone else 2 = You're moderately faster than average at this work 3 = You are significantly faster than average — your efficiency is a competitive advantage worth capturing Score: _____ CRITERION 5: IP complexity 1 = You retain no IP, client owns everything, no reuse value 2 = Moderate — some reusable components or frameworks 3 = High IP/system value — you're delivering something with compounding value beyond the hours invested Score: _____ CRITERION 6: Retainer potential 1 = One-time project, unlikely to have follow-on work 2 = Some ongoing potential but not certain 3 = Clear opportunity to convert to a retainer relationship Score: _____ CRITERION 7: Payment risk 1 = High payment risk — new client, no deposit, international, or past payment issues in your experience 2 = Moderate risk 3 = Low risk — established client, pre-pay, trusted referral Score: _____ CRITERION 8: Relationship goal 1 = Transactional — just completing this project, no LTV focus 2 = Moderate — would welcome more work but not invested 3 = Strategic — this client could become a long-term anchor Score: _____ YOUR TOTAL SCORE: _____ / 24 SCORING KEY: Score 18-24: → Use PROJECT RATE Strong candidate for fixed-price engagement. Your speed and expertise will be rewarded, scope is defined, and client relationship supports a professional project arrangement. Score 12-17: → HYBRID or NUANCED — see Section 4 examples Consider: project rate for deliverables + hourly for ongoing advisory, or project rate with a well-defined scope clause and change order process built in. Score 6-11: → Use HOURLY RATE Scope uncertainty, trust gaps, or revision risk make project pricing financially risky. Protect yourself with hourly until the situation clarifies. ---------------------------------------------------------------- SECTION 4: WORKED EXAMPLES ---------------------------------------------------------------- SCENARIO A: Web designer — Hourly wins --------------------------------------- Project: Monthly website maintenance for a small business. Scope: Ad-hoc updates, plugin management, content edits as needed. Client: New, referred by a trusted source. Decision Matrix Score: Project clarity: 1 (undefined, variable every month) Client type: 2 (referred, no history) Revision risk: 2 (content edits are subjective) Speed advantage: 2 (standard maintenance tasks) IP complexity: 1 (no original IP created) Retainer potential: 3 (ongoing relationship makes sense) Payment risk: 2 Relationship goal: 3 (wants long-term client) TOTAL: 16 → HYBRID zone Recommended approach: Monthly retainer (hourly bank), not fixed project rate. $150/hr with a 5-hour/month minimum. Client gets budget certainty, you protect against runaway scope. --- SCENARIO B: Brand strategist — Project rate wins ------------------------------------------------- Project: Brand identity for a SaaS startup. Scope: Positioning workshop, brand platform document, visual identity system (logo, type, color, usage guide). Client: Series A startup, referred by design firm. Decision Matrix Score: Project clarity: 3 (defined deliverables, scoping call done) Client type: 3 (referred, funded, professional) Revision risk: 2 (creative, but structured process) Speed advantage: 3 (10 years of brand work = 2x speed) IP complexity: 3 (full brand system with reuse value) Retainer potential: 2 (possible ongoing advisory) Payment risk: 3 (funded startup, half upfront) Relationship goal: 3 (strategic client for portfolio) TOTAL: 22 → PROJECT RATE Project rate formula: Estimated hours: 45 hrs Hourly baseline: $150/hr Base: $6,750 + 20% buffer: $8,100 + 20% complexity: $9,720 → Quote: $9,500–10,000 --- SCENARIO C: Copywriter — Nuanced case --------------------------------------- Project: Homepage + 3 landing pages for a fintech startup. Scope: Discovery, research, copy drafts, 2 revision rounds. Client: New client, in-bound inquiry, marketing director. Decision Matrix Score: Project clarity: 2 (defined deliverables, vague tone brief) Client type: 1 (new, no track record) Revision risk: 2 (copy is subjective, "feel" matters) Speed advantage: 3 (specialist fintech copywriter) IP complexity: 2 Retainer potential: 2 (possible ongoing content work) Payment risk: 1 (new client, no deposit agreed yet) Relationship goal: 2 TOTAL: 15 → HYBRID zone Recommendation: Project rate WITH a discovery session first. Charge $500 for a 2-hour brand discovery + brief creation. Then quote the copy project with that brief in hand. Add a strong change order clause before signing. ================================================================ DOWNLOAD MORE FREE TOOLS AT: solostack.madethis.app/resources/freelance-hourly-vs-project ================================================================