Project Pricing Calculator

Price a freelance or contractor project based on hours and day rate, add expenses and a profit margin, and see the final price with and without VAT.

Estimated hours to complete the project

Your hourly rate (£) — or use the day rate field below

Or your day rate (£) — we will calculate the hourly rate (÷8)

Expenses and disbursements (£) — software, travel, materials etc.

Profit margin / contingency (%)

Are you VAT registered?

No — not VAT registered Yes — add 20% VAT

Project Price Breakdown

Estimated hours

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Hourly rate used

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Labour cost

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Expenses

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Subtotal

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Profit margin

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Net price (ex VAT)

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VAT (20%)

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Total project price—

For guidance only. TheBizHQ.com is a private, independent website — not affiliated with HMRC, Companies House or any UK government body. All figures are estimates based on the information you enter and should not be relied upon for financial, tax or legal decisions. Tax rates are reviewed periodically but may not always reflect the latest HMRC changes. Full disclaimer →

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How to price a freelance project

Pricing projects is one of the hardest skills in freelancing. Charge too little and you resent the work. Charge too much and you lose the contract. The right price covers your costs, reflects the value you deliver and leaves you with a sustainable margin.

Time-based pricing

The most common approach — estimate the hours, multiply by your rate. Simple but risky if your estimate is wrong. Always add a contingency of 10-20% to cover scope creep, revisions and things you did not anticipate.

Value-based pricing

For some projects it makes more sense to price based on the value to the client rather than the time it takes. If a project will generate £100,000 of revenue for a client, charging £500 is leaving money on the table even if it only takes you 5 hours.

Fixed price vs time and materials

Fixed price — the client knows exactly what they will pay. You bear the risk if the project takes longer than expected. Always include a clear scope of work and change request process.
Time and materials — you invoice for actual hours worked. The client bears the risk of overruns. Better for projects where the scope is unclear.

Always include expenses separately

Software licences, stock photography, travel, third-party services — always list these separately in your quote rather than absorbing them into your day rate. Clients expect to pay for genuine disbursements and it keeps your pricing transparent.

VAT on your invoices

If you are VAT registered you must add VAT to your invoices. Make sure your quote clearly states whether prices are ex VAT or inclusive of VAT to avoid misunderstandings. Use our VAT Calculator to check your figures and our Invoice Generator to produce a compliant invoice.

Converting to a day rate

If a client asks for your day rate rather than a project price, use our Day Rate Calculator to work out the equivalent.