Project Profitability Calculator
Revenue isn't profit. A $5,000 project that eats 80 hours at your $75/hr opportunity cost loses money. Enter the real numbers — including your time valued properly — to see which projects deserve a yes.
Is this project worth it?
The opportunity-cost trap
Freelancers routinely accept projects that pay less per hour than their rate — because they count revenue, not profit. Your 40 hours on a $5,000 project aren't free; at a $75/hr rate, that's $3,000 of your time. Add $200 in expenses and the "great $5k project" nets $1,800 — a 36% margin that vanishes with one bad revision round.
Run every project through this filter before saying yes. A 30%+ margin is healthy. 10–30% is acceptable for strategic work (great portfolio, dream client, recurring potential). Below 10%? You're donating.
When to say no
Say no when: the margin is negative (obviously), the effective hourly is below your floor rate, or the client shows red flags (vague scope, "exposure" pay, five previous freelancers). Every yes to a bad project is a no to a good one you haven't met yet — your calendar is finite.
Frequently asked questions
How do I calculate project profitability?
Revenue minus (hours × your rate) minus expenses minus fees = profit. Divide by revenue for margin. The calculator above does it — the key is valuing your time at your real rate, not zero.
What is a good profit margin for freelance projects?
30%+ is healthy, 10–30% is acceptable (especially for strategic clients), below 10% is charity. Fixed-price projects should target higher margins to cover overrun risk.
Should I count my own hours as a cost?
Yes — that's opportunity cost. An hour on a low-margin project is an hour not spent on a high-margin one or on pitching. Valuing time at zero is why freelancers stay broke while "busy."
How do platform fees affect profitability?
Directly: a 10% Upwork fee on $5,000 is $500 off profit. Always subtract fees before calculating margin — they come off the top, not out of your "spare" money.
When should a freelancer turn down a project?
Negative margin, effective hourly below your floor, red-flag clients, or when it blocks capacity for better work. A polite "I'm not the right fit" beats a resentful yes every time.
Choose better projects
Estimates for planning purposes only. Opportunity cost varies by person; use your actual target rate.