Project Overrun Calculator

Why fixed-price overruns matter

Fixed-price work turns time risk into margin risk. When actual hours exceed the estimate, the project fee stays fixed while the effective hourly rate falls.

Effective hourly rate

Effective hourly rate divides project revenue after expenses by actual hours worked. It helps compare a fixed fee with the hourly target you expected to earn.

If the target rate itself needs review, start with the Freelance Hourly Rate Calculator. If you are still pricing the work before delivery, use the Freelance Project Price Calculator.

Scope creep

Scope creep happens when extra requirements enter the project without a matching price change. If new work is outside the agreed scope, consider a change request before the overrun becomes severe.

Estimation errors

Not every overrun is scope creep. Some come from optimistic estimates, unclear requirements or delivery surprises. Use the Project Profitability Calculator after completion to review the full cost picture.

When to use change requests

Use change requests when the requested work no longer matches the original agreement. This protects the project relationship and keeps pricing tied to actual effort.

Example

A $4,000 fixed project estimated at 40 hours but delivered in 55 hours with $200 of expenses falls from an estimated $95/hour after expenses to about $69/hour.

FAQ

Is the target-rate difference lost revenue?

Not objectively. It is the difference versus your target hourly rate assumption, which is why the calculator labels it that way.

Can actual hours be below estimated hours?

Yes. The calculator will show the project as under estimate and the effective hourly rate may improve.

Where should I price the project first?

Use the Freelance Project Price Calculator to build a fixed quote before delivery.