Calculator Inputs
Use markup mode for cost-plus quoting, margin mode for profit ratio targets, and take-home mode when deductions must still leave a specific payout.
Example Data Table
| Package | Cost Basis ($) | Markup (%) | Quoted Price ($) | Net Profit ($) |
|---|---|---|---|---|
| Starter Website Copy | 180.00 | 35.00 | 243.00 | 63.00 |
| Monthly SEO Support | 420.00 | 50.00 | 630.00 | 210.00 |
| UX Audit Report | 650.00 | 42.00 | 923.00 | 273.00 |
Formula Used
Labor Cost = Billable Hours × Internal Hourly Cost
Revision Cost = Revision Hours × Revision Hourly Cost
Base Cost = Labor Cost + Revision Cost + Direct Expenses
Overhead Cost = Base Cost × Overhead %
Risk Buffer = Base Cost × Risk Buffer %
Internal Cost = Base Cost + Overhead Cost + Risk Buffer
Markup Price = (Internal Cost + Rush Fee) × (1 + Markup %)
Margin Price = (Internal Cost + Rush Fee) ÷ (1 - Margin %)
Target Take-Home Price = (Target Take-Home + Fixed Payment Fee) ÷ (1 - Total Variable Deductions)
Quoted Price = Preliminary Price - Discount Value
Net Revenue = Quoted Price - Platform Fee - Payment Fees - Tax
Net Profit = Net Revenue - Internal Cost
Actual Markup % = ((Quoted Price - Internal Cost) ÷ Internal Cost) × 100
Actual Margin % = ((Quoted Price - Internal Cost) ÷ Quoted Price) × 100
These formulas help freelancers quote work after labor, revisions, taxes, overhead, risk, and marketplace deductions are considered together.
How to Use This Calculator
- Enter the project name, hours, and internal hourly cost.
- Add direct expenses such as stock assets, tools, or subcontracting.
- Set overhead and risk percentages for non-billable business exposure.
- Include expected revision time and its internal cost.
- Choose markup, margin, or target take-home pricing mode.
- Enter platform fees, payment charges, taxes, discounts, and rush uplift.
- Submit the form to see the quote above the calculator.
- Review the graph, detailed metrics, and competitor comparison.
- Export the results with the CSV or PDF buttons.
FAQs
1. What does markup mean in freelancing?
Markup is the percentage added above your internal cost. It helps cover profit after labor, overhead, revisions, platform fees, and payment deductions are considered.
2. How is margin different from markup?
Markup compares profit to cost. Margin compares profit to selling price. Margin targets usually require a higher final quote than an equal markup percentage.
3. Why should I include overhead costs?
Overhead captures software, admin time, internet, equipment, and other indirect expenses. Ignoring it can make profitable-looking projects underperform in reality.
4. Why do platform and payment fees matter?
Freelance marketplaces and processors reduce the cash you actually keep. Pricing without those deductions can leave your take-home much lower than expected.
5. When should I use target take-home mode?
Use it when you know the payout you want after fees and tax. The calculator back-solves the quote required to hit that net amount.
6. Should revision time be billed separately?
It depends on your contract. Even if you bundle revisions, estimating their cost helps prevent underpricing and reveals whether fixed packages remain viable.
7. What is a break-even price?
Break-even price is the minimum quote needed to recover internal cost and deductions. Anything below it reduces profit or creates a loss.
8. Can I use this for package pricing?
Yes. Enter the total hours, expenses, revisions, and fees for the full package. The result works well for project-based quotes and retainers.