Should You Charge by the Hour or by Project? Pros and Cons for Freelancers
One of the first big decisions you’ll face when starting out as a freelancer is how to charge for your work. Should you go with an hourly rate, or set a fixed price per project?
The answer depends on the type of work you do, your goals, and your level of experience.
In this article, we break down the advantages and disadvantages of each model, so you can choose the one that fits your situation best.
What Does Hourly Pricing Mean?
Charging by the hour means your client pays you based on the time you spend working on a task or project. This is common for work that can vary in scope or is hard to estimate upfront—think consulting, technical support, or creative services.
Pros:
- You get paid for every hour you actually work.
- It offers transparency for both you and the client.
- It’s easier to adjust pricing if the project grows in complexity.
Cons:
- It can raise trust issues if time tracking isn’t clear.
- Your income is capped by how many hours you can work.
- Clients might try to micromanage how you work or how fast.
Pro tip: Use time-tracking tools like Toggl or Clockify to log your hours professionally.
What Does Project-Based Pricing Mean?
With project-based pricing, you agree on a flat fee for the entire job, regardless of how many hours it takes. This is common in fields like design, development, writing, translation, or any work with clearly defined deliverables.
Pros:
- More predictable income (great if you juggle multiple clients).
- You have more freedom to manage your time.
- If you work efficiently, you can increase your earnings.
Cons:
- If you underestimate the effort, you may lose money.
- Clients may try to add extra work (“scope creep”) without increasing the budget.
- You’ll need to clearly define what’s included from the beginning.
Need help getting organized? Check out this Freelancer Checklist to manage your income better.
What’s Better Based on Your Profile?
Can You Combine Both?
Yes! Many freelancers use a hybrid approach, depending on the client or project stage. For example:
- Charge an hourly rate for the initial research or discovery phase.
- Offer a fixed fee for the actual execution.
- Use hourly billing for extra tasks that fall outside the original agreement.
Your Pricing Model Affects Your Stability
How you choose to bill isn’t just a technicality—it directly affects your income stability, cash flow, and client relationships.
If you want to manage your freelance finances better and learn how to structure your income from global clients, check out more of our articles like:
Tools Designed for Global Freelancers (Coming Soon)
Soon, you’ll be able to access tools made specifically for freelancers working with international clients—solutions to help you get paid in USD, manage your income, and plan for growth.
In the meantime, join our community on Forum and follow us on Instagram for more freelance tips and inspiration.
