Hourly rate, or fixed price? Convert between them.
Turn an hourly rate into a fixed project quote, or check what a fixed-price project actually works out to per hour, including what happens if it runs longer than planned.
Why this matters
A fixed price that sounds reasonable can quietly work out to a very low hourly rate once the project runs longer than expected, which is the norm rather than the exception. Converting between hourly and fixed pricing before you commit, and checking the worst-case scenario, gives you a clearer picture of what you're actually agreeing to.
About this calculator
How do I turn my hourly rate into a fixed project price?
Estimate the hours honestly, multiply by your hourly rate, then add a buffer for the overrun that happens on most projects. A buffer of 20 to 30 percent is common. The buffer is not padding: it is the price of taking on the risk that the client would otherwise carry by paying hourly.
What buffer should I add to a fixed-price quote?
Twenty to thirty percent for work you have done many times before, and considerably more for anything unfamiliar or dependent on the client delivering inputs on time. If a project could plausibly take twice as long as your estimate, it should be billed hourly rather than fixed.
Is fixed-price better than hourly?
Fixed price rewards efficiency and gives clients a number they can approve, but it transfers scope risk to you, so it only works with a written scope and a defined revision count. Hourly suits open-ended, exploratory or maintenance work. See the guide on day rates versus hourly for how to choose.
Know the rate behind the number
Every calculation here starts from what you charge. If you have never worked out what that should be, the rate calculator does it from your real costs.
Work out my true rate