Great for freelancers
Useful for designers, marketers, writers, editors, developers, coaches, and other service-based businesses.
Free pricing comparison tool
Should you charge hourly or flat rate?
Use this free calculator to compare hourly pricing against flat-rate pricing for the same work. See your effective hourly rate, estimated monthly profit, and which model gives you a better return on your time.
Compare pricing models
See effective hourly rate
Spot hidden underpricing
Hourly vs flat-rate calculator
Enter your estimated project time, hourly rate, flat-rate package price, direct cost, and monthly volume. The calculator will compare both pricing models side by side.
Include planning, communication, revisions, and delivery time.
What you would charge if billing by the hour.
What you would charge as a single project/package fee.
Materials, subcontractors, per-project software, fees, or other direct costs.
How many similar projects you expect to complete each month.
Software, rent, subscriptions, internet, hosting, or recurring business costs.
This calculator gives you a directional comparison. The best pricing model also depends on scope clarity, client expectations, revisions, and how standardized your process is.
Hourly model revenue per project
$0.00
Based on your project hours multiplied by your hourly rate.
Flat-rate effective hourly rate
$0.00
What your flat package is really paying you per hour.
Hourly monthly profit
$0.00
Estimated monthly profit using hourly billing.
Flat-rate monthly profit
$0.00
Estimated monthly profit using your flat package price.
Best option based on your inputs
Hourly
Compare both pricing models to see which option makes more sense.
Flat-rate advantage
0%
This shows how your flat-rate model compares to hourly billing for the same work.
Useful for package pricing
See whether your package price actually rewards efficiency or quietly lowers what you earn per hour.
Future ad spot
Another clean place for AdSense later without interrupting the calculator flow.
When hourly pricing makes sense
Hourly pricing can work well when a project has uncertain scope, when revisions may vary a lot, or when you are still learning how long common work takes. It gives you protection when jobs expand unexpectedly and can feel easier to justify when clients want detailed tracking.
The downside is that hourly pricing can cap your upside. If you get faster and better, your efficiency does not always lead to higher earnings unless you raise your rate.
When flat-rate pricing makes sense
Flat-rate pricing often works best once you understand your process and know what a typical project really takes. It can simplify the decision for clients and reward you for becoming more efficient over time.
The risk is underpricing. If your flat package looks attractive but takes too many hours or includes too many revisions, your effective hourly rate can quietly fall below where it should be.
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Why this comparison matters
A lot of freelancers switch to package pricing because it sounds more professional, but they do not always check whether the numbers still work. This page gives you a fast reality check so your offer feels clean for the client while still protecting your profit.
Used together, this tool, the profit calculator, and the break-even calculator can help you shape both your pricing model and your monthly goals more clearly.
Should I charge hourly or flat rate?
Hourly pricing is often safer when scope is uncertain. Flat-rate pricing can be better once you understand your process and want efficiency to improve your earnings.
What is an effective hourly rate?
Your effective hourly rate is what your flat project fee pays you per hour once you divide the total price by the hours required to complete the work.
Can this help me price packages?
Yes. This calculator is designed to help you compare billing by the hour against offering a single flat package price.