The real question: how long will it take?
A fixed price is a bet on your estimate. Finish faster than planned and you earn more per hour than your rate. Run over — through extra revisions, unclear briefs or scope creep — and your effective rate drops with every hour.
That's why the calculator asks for an expected overrun. Most freelancers underestimate; 20–30% is a realistic buffer for projects with any uncertainty.
Effective rate = fixed price after fees ÷ (estimated hours × (1 + overrun))
Break-even hours = fixed price after fees ÷ hourly rate after fees
Example
A client offers $600 for a job you estimate at 20 hours. Your rate is $25/hour and the platform takes 10%.
| Fixed price after fees | $540 |
| Hours with 25% overrun | 25 h |
| Hourly for 25 h, after fees | $562.50 |
| Fixed price per hour | $21.60 |
| Break-even | 24 h |
|---|
If the job really takes 25 hours, hourly pays $22.50 more. If you finish in 20, fixed pays $90 more. The break-even of 24 hours tells you how much room you have.
When to choose each
- Fixed price suits clearly defined work you've done many times — you're fast, and the client gets certainty.
- Hourly suits open-ended work, ongoing support and clients who keep changing their minds.
- Fixed with limits is often best: a fixed price with a set number of revisions, and hourly billing for anything beyond. Put that in writing with the contract generator.
Frequently asked questions
Is fixed price or hourly better for freelancers?
Fixed price pays more when you can finish faster than the estimate; hourly protects you when the work is uncertain. Compare both with a realistic overrun.
What is the break-even point?
The number of hours at which both options pay the same. Finish under it and fixed price wins; go over it and hourly wins.
How much overrun should I assume?
20–30% for typical projects. Use more for new clients, vague briefs or work with many stakeholders.
How do I protect a fixed-price project?
Agree a written scope, a fixed number of revisions and an hourly rate for extra work before you start.
TakehomeKit is independent and not affiliated with Fiverr, Upwork, Payoneer, Wise or any other company mentioned. Fees, limits and tax rules change; we check them regularly, but always confirm the final number with the platform or an adviser before you rely on it.