FREE CALCULATOR
Project Pricing Calculator
Estimate a project price that covers your time, direct costs and desired profit margin.
YOUR ESTIMATE
Recommended project price
$0.00
Labor cost: $0.00
Total base cost: $0.00
Expected profit: $0.00
Profit margin: 0.00%
This estimate does not include taxes or payment processing fees.
HOW IT WORKS
How to calculate a project price
This calculator estimates a project price from your expected project hours, hourly rate, direct project costs and desired profit margin.
The formula
estimated project hours × hourly rate
Total base cost
labor cost + direct project costs
Recommended project price
total base cost ÷ (1 − desired profit margin)
Expected profit
recommended project price − total base cost
Example
Suppose a project will take 40 hours, your hourly rate is $50, your direct project costs are $500 and you want a 25% profit margin.
$2,000 + $500 = $2,500 total base cost
$2,500 ÷ (1 − 0.25) = $3,333.33 recommended price
$3,333.33 − $2,500 = $833.33 expected profit
What the result means
The recommended price is the amount needed for the total base cost to represent the portion of revenue left after your desired profit margin. For example, with a 25% margin, costs represent 75% of the project price.
This is a planning estimate. The current calculator does not automatically add taxes, payment processing fees or other costs that are not included in the values you enter.
Frequently asked questions
Why is the project price not just cost plus the margin percentage?
Profit margin is measured against the final selling price, not against cost. Adding 25% to cost creates a 25% markup, which is different from a 25% profit margin.
What should I include in direct project costs?
Use the costs you expect to incur specifically for the project, such as subcontracting, licensed assets, materials or other direct expenses that are relevant to your work.
Can I use my freelance hourly rate here?
Yes. If your hourly rate is already based on your income and business planning, you can use it as the hourly-rate input and then add any direct project costs separately.
Does the estimate include taxes and payment processing fees?
No. The current calculator does not automatically add them. Include applicable costs in your planning when they matter to the project.