More hours at the same fee
USD 3,000 estimated at 20 hours implies USD 150/hour. Actual delivery of 30 hours gives USD 100/hour and a ten-hour, 50% overrun. The calculator does not authorize increasing the agreed fee.
Project billing
Free Fixed-Fee Effective Hourly Rate Calculator
Review the time outcome of a completed fixed-fee project. The fee divided by actual delivery hours gives an internal rate measure; it does not turn the agreement into hourly billing or show profit and collected cash.
What you can do here
Compare an agreed fixed fee against estimated and actual delivery hours, showing the implied rates and hours variance.
Built for real invoice workflows
Use the findings in future estimates; invoice the current project under its approved terms.
Preparing your calculator with today’s date…
Calculation notes
How the result is calculated
Estimated implied hourly rate = agreed fee ÷ estimated hours. Actual effective hourly rate = fee ÷ actual hours. Hours variance = actual − estimated, with percentage variance relative to estimated hours. Rates round for display only. Both hour denominators must be positive. Costs, tax, expenses, payment status and scope-change rights are outside the calculation.
Formulas and examples reviewed October 2, 2026. Illustrative figures; no tax or contractual determination.
Fewer hours without a refund assumption
USD 2,000 estimated at 20 hours and completed in 16 gives USD 100 estimated and USD 125 actual per hour, with a four-hour reduction. Contractual price remains a separate decision.
Questions about this calculation
Is the effective hourly rate profit?
No. It excludes staff costs, software, overhead and other costs. It also does not show whether the client paid the invoice.
Should I bill an overrun automatically?
No. Review the agreed scope and any approved change. Extra internal time alone does not change a fixed-fee agreement.
How to use it
1
Enter the agreed service fee excluding tax and pass-through expenses.
2
Enter the original estimate and complete actual delivery hours on the same basis.
3
Use the variance for the next estimate while preserving the existing agreed fee.
Why it helps
See the effect of a time overrun on the implied rate.
Compare estimate and actual hours consistently.
Keep project review separate from permission to charge extra.
Next step
From free tool to live invoice workflow.
Use the result when creating your invoice in InvoiceAgent. Planner setup links carry the settings they describe into a draft. Review your dates, amounts, PDF, and reminder settings before scheduling.
Related workflows
Move from the quick answer into the rest of the invoice system.
Record the project review
Record the project review
Separate scope, time causes and next-estimate decisions.
Review the billing outcome
Review the billing outcome
Keep fixed-fee billing distinct from retrospective hourly analysis.
Invoice templates
Invoice templates
Use the result inside invoice formats that are ready for clients and easier to automate.
Knowledge base
Knowledge base
Review the billing concepts behind the numbers before they go onto a live invoice.
Profession pages
Profession pages
See how freelancers, consultants, and agencies apply the same calculator output in different workflows.