Free Tool

Are you pricing the project, or just the hours?

A proposal built on hours times rate alone has no room for scope creep or profit. This calculator adds both back in, transparently.

What it means

This estimator starts from your raw cost (hours × rate), adds a scope risk buffer for the unknowns every project has, and then adds your target margin on top — so the final number is a price, not just a cost.

Why it matters

Agencies that quote bare cost with no buffer or margin are the ones that lose money the moment scope shifts even slightly. Building the buffer and margin in up front means normal scope drift doesn't turn a profitable project into a loss.

Calculator

Try it with your own numbers

hrs
$

Price this proposal at about $7,820 to protect your margin

$7,820

Recommended proposal price

$5,100

Base cost (hours × rate)

$5,865

Cost with risk buffer

$1,955

Margin dollars

Recommendations

  • Raise the scope risk buffer for first-time clients or projects with a vague, unwritten scope.
  • Present the price after walking through the scope, rather than leading with a bare number.
  • Build a change-order process for any work that goes beyond the buffer you quoted.

Suggested next steps

  • Turn this estimate into a formal proposal your client can approve.
  • Track actual hours against this estimate once the project starts.

Relevant Sarion features

Project Management

Keep work moving forward

Deadlines stay visible instead of living in someone's memory.

  • Status tracking
  • Due dates
  • Task checklists
Invoices

Never lose track of a payment

Overdue invoices get chased before they turn into bad debt.

  • Paid
  • Unpaid
  • Overdue
See every feature →
Benchmarks

What's typical

Typical buffer for well-defined scope

10-15%

Typical buffer for vague or new-client scope

20-30%

Common target margin on services work

20-35%

How to improve

What actually moves this number

  • Raise the scope risk buffer for first-time clients or projects with a vague, unwritten scope.
  • Present the price after walking through the scope, rather than leading with a bare number.
  • Build a change-order process for any work that goes beyond the buffer you quoted.
Common mistakes

Where this usually goes wrong

  • Quoting the bare hours × rate cost with no buffer or margin at all.
  • Underestimating hours just to make the number look more competitive and "win" the deal.
  • Using the same buffer percentage for every project instead of adjusting it to how well-defined the scope actually is.
FAQ

Common questions

Why not just quote hours times rate?

Because that number only covers your cost, not the risk of scope changing or any actual profit. A buffer and margin are what separate a price from a cost estimate.

How do I pick the right scope risk buffer?

Use a lower buffer (10-15%) when the scope is written down and well understood, and a higher buffer (20-30%) for new clients or projects where requirements are still fuzzy.

Should I show the client this breakdown?

Not usually line by line — most agencies present a single price. The breakdown is for your own confidence that the number is defensible, not necessarily for the client-facing document.

Put these numbers to work

Sarion is where the client records, invoicing, and portal behind these numbers actually live.

Proposal Value Estimator · Sarion