Freelance Project Profitability Calculator
Freelance quotes often look profitable until taxes, overhead, and unbilled admin time eat into the total. Enter your project fee, estimated billable hours, extra unpaid hours (revisions, admin, client calls), expenses, and your tax rate to see your real effective hourly rate and profit margin.
About this calculator
Calculate your true hourly rate and profit margin on a freelance project after accounting for estimated hours, expenses, taxes, and unpaid admin time.
Frequently Asked Questions
Why include unpaid hours in the calculation?
Admin work, client calls, revisions, and invoicing all take real time that clients don't pay for directly. Including them gives you a true picture of your effective hourly earnings, not just your quoted rate.
How do I lower my effective tax rate estimate?
Your actual self-employment tax rate depends on your income bracket, deductions, and business structure. Check with a tax professional for a precise number, or use last year's effective rate as an estimate.
What does a negative gap to target mean?
A negative gap means you're exceeding your target hourly rate on this project — a good sign. A positive gap means you'd need to either raise your fee or reduce hours to hit your goal rate.