Freelance pricing example: compare hourly billing with a fixed project fee
Calculate a planning rate, price one scope both ways and test how revisions, extra hours and a deposit affect the project rather than promising a universal rate.
Separate the annual rate you need for planning from the amount you offer for a particular job. This example prices a landing-page project both hourly and at a fixed fee, with explicit scope and revision assumptions. The figures are illustrative and do not estimate what your market will accept or what you will take home.
Build the planning rate from available billable time
Assume an annual personal-income target of USD 60,000 before personal tax, annual business expenses of USD 12,000, 25 billable hours a week and 48 working weeks. The revenue target is USD 72,000 and planned billable capacity is 1,200 hours. USD 72,000 ÷ 1,200 gives a USD 60 hourly baseline.
This assumes the planned hours are sold and collected. It does not fund additional tax, contingency or unpaid invoices unless you include them in your assumptions. Do not substitute all working hours for billable time.
| Input | Example |
|---|---|
| Desired annual personal income | USD 60,000 before personal tax |
| Annual business expenses | USD 12,000 |
| Billable hours / week | 25 |
| Working weeks / year | 48 |
| Calculated baseline | USD 60/hour |
Define the same deliverable before comparing prices
The proposed job includes one landing page using supplied copy and images, a contact form, mobile layout checks and one consolidated revision round. It excludes new branding, copywriting and additional pages. The studio plans twelve delivery hours plus three hours for the included revision round: fifteen hours total.
An hourly offer at USD 60 would estimate USD 900 for fifteen approved billable hours. A separate fixed-fee proposal might be USD 1,080 for the same defined scope, based here on an 18-hour planning allowance. These are alternative proposals, not two charges for the same work.
Project price: USD 1,080.00 for the stated landing-page scope. Includes one consolidated revision round using the agreed design and supplied content. Excludes additional pages, new branding, new copy and new integrations. Additional work requires a separate agreed scope and price before it starts. Payment milestones and delivery dates: [agreed details].
Test the effect of actual delivery time
Divide the fixed fee by actual hours to see its effective billing rate. At twelve hours it is USD 90/hour; at eighteen hours it is USD 60/hour; at twenty-four hours it is USD 45/hour. These are revenue per delivery hour, not profit after business costs.
Under a genuine hourly agreement, actual approved hours may change the bill. Under a fixed-scope agreement, spending more time internally does not automatically create approved extra work. Track both actual hours and scope changes so you can tell the two apart.
| Actual hours | Effective revenue per hour | Comparison with USD 60 planning baseline |
|---|---|---|
| 12 | USD 90 | Above the baseline |
| 18 | USD 60 | Matches the baseline |
| 24 | USD 45 | Below the baseline |
Keep the deposit inside the agreed fee
A proposed 30% advance on USD 1,080 is USD 324, leaving USD 756. It is not an extra USD 324 added to the fee. Record money only when received, and make the later milestone clear before accepting the project.
Use the quote editor to communicate the chosen scope and price. Keep internal hourly assumptions separate from what the customer is actually agreeing to pay. Compare estimates with real timesheets after completion instead of treating this illustrative fee as a market benchmark.
This guide provides general educational information and is not legal, accounting, tax or financial advice. Requirements vary by country, industry and transaction. See how Docuivo tests its tools and calculations.