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Free Freelance Profit Margin Calculator

Enter what the client paid, what the project cost you, and the hours it took. The calculator shows profit after your time, the profit margin, and what you effectively earned per hour.

your numbers

$

What the client pays, excluding any sales tax or VAT.

$

Money spent because of this project: assets, subcontractors, printing.

hrs

Include calls, emails, revisions and admin.

$

For example the minimum rate your income plan needs. Enter 0 to leave your time out.

your result

Profit margin
59.0%

Profit ÷ revenue × 100

Project profit
$1,415.00

Revenue − direct costs − hours × value of your time

Project costs
$985.00
Effective earnings per hour
$123.61

(Revenue − direct costs) ÷ hours, before valuing your time

Profit treats your own time as a cost at the hourly value you enter; effective earnings per hour leave it out. Planning help, not accounting or tax advice. Nothing you enter leaves your browser.

how the calculation works

  1. 1Project costs = direct costs + hours worked × value of your time per hour
  2. 2Project profit = revenue − project costs
  3. 3Profit margin = project profit ÷ revenue × 100 (N/A when revenue is zero)
  4. 4Effective earnings per hour = (revenue − direct costs) ÷ hours worked (N/A when hours are zero)

worked example

The calculator above starts with these numbers.

inputs

Worked example inputs
Project revenue$2,400
Direct costs$175
Hours worked18
Value of your time$45 an hour

results

Worked example results
Project costs$985.00
Project profit$1,415.00
Profit margin59.0%
Effective earnings per hour$123.61

assumptions and limits

  • Your own time is treated as a cost in profit and margin, at the hourly value you enter. Enter 0 to leave it out.
  • Effective earnings per hour never include your time as a cost: it's what you actually earned for each hour worked.
  • Revenue should exclude sales tax or VAT you collect on behalf of a tax authority.
  • Inputs must be zero or more. A loss shows as negative profit and a negative margin.

questions

Margin divides profit by revenue; markup divides profit by costs. A 30% markup on cost is only a 23.1% margin.

Count it if you want to know whether the project paid for your time at your target rate. Leave it out (enter 0) to see what was left over for you.

No. The calculation runs in your browser and nothing is stored or sent.