#768 · Business Tool

Agency Price Calculator

Use this agency price calculator to create profitable project or retainer pricing from estimated hours, hourly cost, overhead, revision buffer, and target margin.

Calculator

Project pricing inputs
hours
$ / hr
%
%
%
Ad space

How to use this calculator

Enter estimated hours, hourly cost, overhead percentage, revision buffer, and target margin. The calculator builds a recommended price that includes scope creep protection.

What the result means

A strong price covers labor, overhead, revisions, and profit. If effective hourly rate is too low, the agency may be underpricing or underestimating work.

Base Cost = Estimated Hours × Hourly Cost. Adjusted Cost = Base Cost × (1 + Overhead + Revision Buffer). Recommended Price = Adjusted Cost ÷ (1 - Target Margin).

Revision buffer is important because agency projects often lose margin through unplanned meetings, edits, and scope expansion.

Example calculation

If a project needs 80 hours at $55 cost with 18% overhead, 15% revision buffer, and 45% target margin, the recommended price is about $10,640.

Tips for better results

  • Add a scope creep buffer to every custom project.
  • Track actual hours after project completion.
  • Use retainers for recurring work instead of repeatedly discounting projects.

FAQ

How should agencies price projects?

Agencies should price projects from labor cost, overhead, revision risk, market value, and target profit margin.

What hourly rate should an agency charge?

The charge rate should cover employee cost, overhead, non-billable time, profit, and positioning in the market.

How much margin should agencies target?

Many agencies target 40% to 60% project gross margin, depending on service type and complexity.

How do revisions affect project pricing?

Revisions add labor hours and reduce margin unless the quote includes a clear revision limit or buffer.

What is a profitable agency pricing model?

Profitable pricing usually combines value-based pricing, retainers, scoped deliverables, and controlled revision terms.

Agency decision module

MetricMeaning
Main ResultPrimary agency KPI for this decision.
Health Score0 to 100 score based on margin, utilization, cash flow, or ROI.
BenchmarkAgency benchmark comparison for quick diagnosis.
RecommendationAutomatic action based on the result.

Browse more calculators

Category hubs