Was your project actually profitable? Calculate true margin after time, expenses, revisions, and taxes. Know your real hourly rate on completed projects.
Scope creep is the silent project killer. An extra 10 hours on a $5,000 project (at your $50/hr cost rate) reduces profit by $500 and your effective hourly rate drops significantly. Track every project post-mortem to identify patterns and price accordingly.
Divide net profit by total hours (including unbilled extras). This is your actual compensation rate — most freelancers discover they earn 30–50% less than they think.
Aim for 40–60% gross margin on projects. Under 30% signals underpricing, scope creep, or inefficient delivery. Adjust rates for future projects immediately.
Document every out-of-scope request with a written change order before doing the work. Even a simple email confirmation protects you and trains clients to respect boundaries.
Review every project within 48 hours of completion. Compare estimated vs actual hours. Adjust estimates by 1.2–1.5× for similar future projects based on historical data.
Set rates based on actual project data and target margins.
Build the invoice for your next project with tax and discounts.
Calculate how much tax to set aside from project income.
Calculate ROI on time investments and tool subscriptions.