How to use the project price quote calculator
- Enter your estimated hours and hourly rate.
- Add a buffer percent for revisions and surprises, and any expenses you pass on with a markup.
- Add a discount, sales tax that applies to your work and the deposit you ask for.
- Read the quote total, the deposit and balance, and what you earn per hour if the job uses the whole buffer.
Formula
Labor = hours x rate
Buffer = labor x buffer percent
Subtotal = labor + buffer + expenses + expense markup
Total = (subtotal - discount) + tax
Pay per hour if the buffer is used = labor after discount / (hours x (1 + buffer))
Percentages apply in this order: buffer on labor, markup on expenses, discount on the subtotal, then tax on the discounted amount.
40 hours at $75 with a 15% buffer
Labor is 40 x $75 = $3,000 and a 15% buffer adds $450, so the quote is $3,450. A 50% deposit is $1,725, with $1,725 due on delivery. If the job uses the entire buffer, you work 46 hours for $3,000 of labor, which is $65.22 an hour instead of $75.
A second quote adds $200 of expenses with a 20% markup ($40), a 10% discount and 8% tax. The subtotal is $3,690, the discount is $369, the amount after discount is $3,321, tax is $265.68 and the total is $3,586.68.
What a buffer is for
Estimates often miss steps nobody listed: revisions, emails, waiting and rework. A buffer puts that into the price up front, so you do not eat the extra time. The tool shows what your hourly pay would be if the buffer is fully used, so you can see how much room you have.
To set your rate in the first place, start with the freelance rate calculator. To turn the quote into a bill, use the invoice generator.
Fixed price or hourly
A fixed quote shifts the risk of overruns to you and the reward for finishing early to you too. If the scope is unclear, an hourly rate or a quote with a limit on revisions protects you better. Put the scope and the number of revisions in writing, along with the deposit and payment terms.
Check what your quote earns after costs with the profit margin calculator and the markup calculator.
Assumptions and limits
- Hours, rate and every percent are your inputs. The buffer and deposit shown are examples.
- Sales tax applies only if you enter a rate, and only to the amount after the discount. Whether tax applies to your work is for you or your tax adviser to decide.
- Income tax, self-employment tax and the cost of finding the work are not included.
- The tool does not judge whether the price suits your market or your client.
Frequently asked questions
How do I price a project from hours?
Multiply your estimated hours by your hourly rate, then add a buffer for the unknowns. Forty hours at $75 with a 15% buffer is $3,450.
How big should the buffer be?
That depends on how well you know the work and the client. Use a larger buffer when the scope is vague, and watch the pay per hour result to see what a full overrun would cost you.
Why is my pay per hour lower than my rate if the buffer is used?
The quote is fixed, so extra hours inside the buffer add no money. Dividing the same labor fee by more hours lowers what you earn per hour.
What deposit should I ask for?
The tool takes any percent you enter. Choose one that covers your early costs and signals commitment, and agree it with the client in writing.