Free tool

Agency and freelance rate calculator

Work out the hourly rate you need to charge to pay yourself, cover the costs and make a profit. Then see what an extra revision round should cost, and what giving rounds away does to the rate you actually earn.

Works for a freelancer or a team. Nothing is stored, and the link carries your numbers so you can share them.

What you need

The hours you can bill

Revision rounds

The four numbers behind a rate

Start with the floor: what you need, divided by the hours you can actually bill. The market and the client tell you how far above it you can charge, and the project price calculator handles that part.

  • What you need. Pay for everyone on the team, plus the costs of running the business: software, rent, insurance, equipment, accountant.
  • The hours you can bill. Not 40 a week. Take out holidays, sick days and public holidays, then the hours that go on admin, sales, quoting and email. Most freelancers bill 50 to 75% of the hours they work, and nobody should plan on more than 80%.
  • Profit. Added on top of your costs: the cushion for a slow month, a client who pays late, and the next laptop. 20 to 30% is a healthy minimum. Without it, the rate only works if every week is full.
  • What a revision round costs. The design changes, the call, the project management and the checking. Usually four to eight hours, and the most common thing to give away for free.

Break-even, your rate and the real rate

  • Break-even rate is the lowest you can charge and still pay everyone and every bill, with nothing left over.
  • Your hourly rate is the break-even rate plus your profit, rounded up to the nearest 5.
  • Pricing a project? Use the break-even rate, not the hourly rate. Production cost should be what the work costs you. The profit comes from where you price it, and the project price calculator shows where.
  • Day rate is the hourly rate times a working day, from the hours a week you entered.
  • An extra round is the hours a round takes, at your hourly rate. It is the number to put in the proposal as the price of a round beyond the ones included.
  • The real rate is what you earn per hour on a project once unpaid rounds are counted. A 40-hour project quoted at your rate, with two free rounds of five hours, pays you for 40 hours and takes 50.

Put the rounds in the proposal, then price the extra one

Most scope creep on design and web projects is not a big new feature. It is round four. The client is not being difficult; nobody told them round three was the last one included.

  1. 1

    Say how many rounds are included. Two or three is normal for design, and one or two after the build for a website.

  2. 2

    Say what a round is. One set of consolidated feedback from one person, answered in one go.

  3. 3

    Put the price of an extra round in the proposal. The number from this calculator. A price agreed at the start is a line item. A price raised in round four is an argument.

  4. 4

    Count the rounds as you go. "This is round two of three" in the email that sends the work.

Rounds that count themselves

HopBack is a client feedback tool for agencies and freelancers. Each review is a numbered round, the client sees "round two of three" when they open it, and their comments are pinned to the page, the design or the PDF instead of spread across emails. When the included rounds are used, the next one is visibly an extra.

FAQ

Questions

Is this calculator free?

Yes. No account, no email, no limit. It is a free tool from HopBack, and it stays free.

What hourly rate should a freelance designer charge?

Whatever covers your pay, your costs and a profit over the hours you can bill. That number depends on where you live and what you need, which is why a calculator beats a survey average. Use the result as the floor, then check it against what clients in your market pay for the work.

What percentage of my time is billable?

For most freelancers, 50 to 70%. The rest goes on sales, quoting, admin, invoicing and learning. Agencies often plan for 60 to 75% for designers and developers, much less for the owner, and never more than 80% for anyone.

Should I charge more than the calculator says?

Often, yes. The calculator gives the rate you need. The rate you can charge depends on your experience, your niche and the value of the work to the client. If those support a higher number, use it.

How do I price an extra revision round?

Time how long a round actually takes, including the call and the checking, and multiply by your hourly rate. Put that price in the proposal next to the number of rounds included.

Does this work for an agency?

Yes. Set the number of people and the average pay per person, add the agency's running costs, and use a lower billable share to allow for the time that goes on management and sales.

Does it include tax?

Enter pay before income tax. The calculator does not add sales tax, VAT or GST, which goes on top of the rate on the invoice.

Does HopBack see my numbers?

No. Everything is worked out in your browser. The numbers sit in the page address so you can bookmark or share the result, and nothing is sent to us.

Price the extra round, then let the rounds count themselves

14 days of Studio. No card needed.