Free project budget calculator

Quote projects with confidence, not guesswork. Underquoting is the silent killer of freelance businesses. You win the project, then spend twice the expected hours, and your effective rate drops to fast food wages.

This calculator builds your quote from the ground up: estimated hours, your hourly rate, project-specific expenses, and a healthy profit margin. The result is a number you can defend to clients and live with yourself.

Enter your estimates. See the total. Adjust until the math works for everyone.

Build Your Project Quote

Enter hours, rate, and expenses

Estimated Hours

Hourly Rate ($)

Project Expenses ($)

Buffer / Contingency (%)

Profit Margin (%)

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Building accurate project estimates

Most freelancers underestimate projects by 20-50%. According to research on planning fallacy, humans consistently predict tasks will take less time than they actually do, regardless of experience.

The estimation framework

Break it down: Split the project into phases and tasks. Estimate each separately. Small chunks are easier to gauge than monolithic projects.
Add buffer: Multiply your estimate by 1.2-1.5x. This accounts for unplanned additions, revisions, client delays, and unforeseen complexity.
Track actuals: After the project, compare your estimate to reality. Over time, you will learn your personal multiplier.

Common sources of underestimation

Client communication: Emails, calls, and feedback rounds often equal the actual production time
Revisions: Budget for at least 2 revision rounds, more for subjective work like design
Project management: Scheduling, status updates, and coordination take real time
Technical issues: Bugs, compatibility problems, and edge cases always appear

A study by McKinsey found that large projects run 45% over budget and 7% over time on average. Even small projects suffer from optimism bias.

Project pricing strategies

There are multiple approaches to quoting projects. The right choice depends on project clarity, client relationship, and your risk tolerance.

Fixed price

One number for the entire scope. Client knows exactly what they will pay. You bear the risk of underestimation but keep the upside if you finish early.

Best for: Well-defined projects you have done before. Standard deliverables. Clients who need budget certainty.

Time and materials (hourly)

Bill for actual hours worked, often with an estimate or cap. Lower risk for you, but clients may feel uncertain about final cost.

Best for: Unclear scope. Discovery and exploration projects. Ongoing work. Clients who trust you.

Hybrid pricing

Fixed price for defined phases, hourly for unknowns. Example: "$3,000 for design, hourly for development (estimated 40-60 hours)."

Best for: Complex projects with some clear deliverables and some uncertain elements.

Value-based pricing

Price based on the value you create for the client, not the time you spend. A redesign that increases conversions by 2x is worth more than the hours suggest.

Best for: Projects with measurable business outcomes. When client ROI is clear and large.

What to include in project budgets

A project quote has more components than most freelancers include. Missing any of these erodes your margin.

Direct labor

Hours × rate. But which rate? Your target hourly rate should already cover overhead and profit. If not, you need to add those separately.

Project-specific expenses

Stock assets: Images, fonts, icons, templates
Software: Tools bought specifically for this project
Subcontractors: Specialists you bring in
Travel: On-site visits, client meetings
Printing/production: Physical deliverables

Bill these at cost or with a 10-15% markup to cover your time managing them.

Overhead allocation

If your rate does not include overhead, allocate a percentage of project revenue to cover fixed costs: software subscriptions, insurance, equipment depreciation, etc.

Profit margin

After covering costs and paying yourself, the business needs profit for growth, savings, and risk buffer. Standard service business margins are 15-25%.

Contingency

For uncertain projects, add 10-20% contingency. You can offer to refund unused contingency, which clients appreciate.

Frequently asked questions

How do I estimate hours for a project?

Break the project into phases (discovery, design, development, revisions, delivery). Break phases into tasks. Estimate each task separately, then add 20-50% buffer for unknowns. Track actual hours on similar projects to calibrate your estimates over time.

Should I include a buffer in my quote?

Yes. Most freelancers add 20-30% contingency for fixed-price projects. You can present this as a range ('$4,000-5,000') or include it in your base estimate. Without buffer, you absorb every surprise and your margin disappears.

What do I do when clients request work outside the original scope?

Define scope clearly upfront in writing. Specify what is included AND what is not. When clients request additions, respond with 'That's a great idea. It would add approximately X hours / $Y to the project. Should I prepare a change order?' This makes expansion visible and billable.

Should I charge for revisions?

Include a reasonable number of revisions in your quote (typically 2 rounds). Beyond that, charge hourly. Make this policy clear upfront: 'This quote includes 2 rounds of revisions. Additional revisions are billed at $X/hour.' This prevents endless revision loops.

What profit margin should I target?

For service businesses, 15-25% net profit margin is healthy. Your rate should already include your salary; profit is what remains after you pay yourself. Below 15%, there is no cushion for slow months or business investment.

How do I quote when the scope is unclear?

Offer a paid discovery phase: 'For $X, I will analyze your requirements and deliver a detailed proposal with a fixed quote for the full project.' This reduces your risk and demonstrates value before the main engagement.

Should I itemize my quote or give one number?

It depends. Itemized quotes help clients understand value but invite line-item negotiations. Single numbers are simpler but feel arbitrary. A middle ground: break into phases (design $X, development $Y) without hourly detail, so clients see the structure without nitpicking each task.

How do I quote expenses?

List pass-through expenses separately (stock photos, software, travel). Bill at cost or with a 10-15% markup to cover your time managing them. Get client approval before incurring expenses. Some freelancers wrap small expenses into their rate for simplicity.

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