How the freelance pricing calculator works
Last updated 10 November 2026
A good project price covers your time, your costs and the chance that the work takes longer than planned.
How it works
- Labour = hours × rate.
- Allowance = labour × the percentage you choose.
- Price before VAT = labour + allowance + expenses. VAT is added at the standard rate if you tick the box.
Worked example
With the starting figures:
- Labour is R 20 000 and the allowance for extra work is R 2 000.
- With expenses of R 1 000, the price before VAT is R 23 000.
Pricing a project
A good project price covers your time, your costs and the chance that the work takes longer than planned. Quoting hours times a rate misses the last two. This calculator builds the price in steps so you can see each part.
The parts of the price
- Labour: estimated hours times your hourly rate.
- Allowance for extra work: a percentage of labour you choose, for changes and overruns.
- Expenses: software, travel, stock or anything you pay for the job.
- VAT: added at the standard rate if you tick the box, for businesses that are registered.
How to get the hourly rate
If you do not know your rate, the hourly rate calculator works backwards from the income you want, your costs and the hours you can bill. Many freelancers bill far fewer hours than they work, because admin, sales and gaps between jobs take time.
Protecting yourself
- Agree what is in scope and what counts as extra work.
- Ask for a deposit on larger projects.
- Put the quote in writing and say how long it is valid.
- Say how many rounds of changes are included.
What this does not cover
The tool does arithmetic. It does not decide what the market will pay, and it does not work out tax. Once the price is set, the quotation generator and the invoice generator turn it into a document.
Quoting with confidence
Show the client the price, not the working. Keep the labour, allowance and expenses for yourself, because they explain why the price cannot drop much. If a client wants a lower price, reduce the scope instead of the rate, for example by taking out a feature or a round of changes. That keeps your hourly rate intact.
Things to watch
- Agree what is in scope and what is extra.
- Ask for a deposit on larger projects.
Send it with the quotation generator. Read the full disclaimer.