Freelance & Contractor
Project Profit Calculator
Calculate gross profit, profit margin, and effective hourly rate on a fixed-price project. For U.S. freelancers and contractors.
Know the numbers
How to use this calculator
Enter the project price, estimated hours, your hourly cost rate, and optional platform fees percentage.
A worked example
$5,000 project, 40 hours, $50/hr cost, 10% platform fee: gross profit = $2,500, margin = 50%, effective hourly = $62.50.
The calculation
Gross profit = price − (hours × cost rate) − (price × fee %). Margin = gross profit ÷ price × 100. Effective hourly = gross profit ÷ hours.
Before you use the result
This estimates profit before income taxes and personal expenses. Platform fees vary by marketplace. Use your actual cost rate (not your client rate) for accurate results.
Common scenarios
Use this calculator whenever you need to verify your hours, check a paycheck, or prepare a timecard submission. The result is the same arithmetic the payroll department uses, displayed in a form you can inspect.
Calculation methodology: View formulas, limits, and corrections
Common questions about Project Profit Calculator
How do I calculate profit on a fixed-price project?
Enter the project price, estimated hours, your cost rate, and platform fees. The calculator shows gross profit, margin percentage, and effective hourly rate.
What is my cost rate?
Your cost rate is what you need to earn per hour to cover your own expenses and income goals. If you need $80,000/year and bill 1,500 hours, your cost rate is $53.33/hr.