Freelance Quote Calculator
Build a quote from hourly rate, hours and materials. Add profit margin and VAT.
Last updated: April 2026 · Source: GOV.UK – Set Up as a Sole Trader
Quote Total
£1,080.00
| Labour (20 hrs x £35) | £700.00 |
| Materials | £200.00 |
| Margin (20%) | +£180.00 |
| Total | £1,080.00 |
Disclaimer
This calculator is provided for informational purposes only and should not be considered as financial or tax advice. All calculations are performed locally in your browser — no personal data is collected or sent to our servers. Rates and thresholds are sourced from HMRC and GOV.UK and are updated for the current tax year. Always verify results with HMRC or consult a qualified professional before making financial decisions.
How It Works
Building a freelance quote starts with estimating the time required, broken into distinct phases: research, production, revisions, and project management. Multiply total estimated hours by your hourly rate, which should reflect your skill level, market rates, and the value delivered. Then add direct material or third-party costs at their actual price. A contingency buffer of 10–20% on the hours estimate protects against scope creep and unforeseen complications.
Next, add your overhead recovery—a proportion of fixed business costs (software licences, insurance, equipment depreciation, workspace costs) allocated per project. Then apply your target profit margin on top: a 20% margin means multiplying subtotal costs by 1.25. If you are VAT-registered (turnover above £90,000), add 20% VAT to the final figure. The quote should clearly separate labour, materials, expenses, and VAT so the client can see the breakdown.
When pricing, consider whether the work is a one-off or ongoing (retainer pricing may offer a discount for volume commitment), the client's budget sensitivity, and competitive rates in your sector. HMRC considers your pricing as part of your self-employment evidence—a genuine freelancer sets their own rates and bears financial risk. Always issue a written quote with a validity period, payment terms (e.g. 30 days), and a clear scope statement to limit disputes.
Web design quote for a small business website
- Estimated hours: 40 hours × £65/hr = £2,600 labour.
- Third-party costs: stock images £80, premium plugin licence £120 = £200 materials.
- Overhead allocation: £200 (software, insurance pro-rata).
- Subtotal: £3,000. Apply 15% profit margin: £3,000 × 1.15 = £3,450.
- Add 20% VAT: £3,450 + £690 = £4,140 total quote (VAT shown separately on invoice).
Source: GOV.UK – Set Up as a Sole Trader
Frequently Asked Questions
- What does the Freelance Quote Calculator do?
- Build a quote from hourly rate, hours and materials. Add profit margin and VAT. All calculations are performed in your browser using official UK rates and thresholds.
- Is this suitable for my business?
- This calculator provides general estimates based on standard UK business rates and rules. Every business is different — consult your accountant for advice specific to your circumstances.
- Does this use 2025/26 tax rates?
- Yes. All rates and thresholds are based on the current 2025/26 UK tax year. Corporation Tax main rate is 25% for profits over £250,000, with a 19% small profits rate.