Set Prices From Capacity and Profit

Made for Freelancers

Set Prices From Capacity and Profit

Also useful for: people in Freelancers

90 min Advanced Decisions Earn More Need to Compare Options

Build a defensible price floor and package structure from annual costs, realistic billable capacity, project effort, client value, and delivery risk.

Create a free account to save your progress and use this Playbook.

Use this when

You are setting or raising rates, quoting a complex project, changing pricing models, or earning solid revenue without keeping enough profit.

You'll need

  • Currency
  • Target annual compensation
  • Annual business overhead
  • Tax and benefits reserve
  • Target profit margin
  • Working weeks
  • Weekly working hours
  • Billable share
  • Service and project context
  • Estimated project work
  • Client value and stakes
  • Delivery risks
  • Current pricing model
  • Models to compare
  • Pricing references

You'll get

  • Annual revenue target supported by a visible formula
  • Billable capacity based on realistic working time
  • Hourly and project price floors calculated without double-counting
  • Pricing models compared against the same decision factors
  • Three package options with distinct scope and value
  • Risk scenarios tested against margin

By the end of this playbook

You will have:

  • Annual revenue target supported by a visible formula
  • Billable capacity based on realistic working time
  • Hourly and project price floors calculated without double-counting
  • Pricing models compared against the same decision factors
  • Three package options with distinct scope and value
  • Risk scenarios tested against margin

Sample

This is sample data, not your prompt. Pro unlocks this higher-stakes Playbook. On Free Playbooks you can still copy the assembled prompt into any AI.

Sample input

Currency: USD
Target annual compensation: 90000
Annual overhead: 24000
Tax and benefits reserve: 25 percent
Target profit margin: 15 percent
Working weeks: 46
Weekly hours: 40
Billable share: 55 percent
Project: A 10-week brand and launch strategy engagement
Estimated effort: 138 total project hours
Client value: The work supports a launch with roughly $150,000 in estimated first-year revenue
Main risks: Executive approval delays, conflicting feedback, and possible extra sales materials
Current model: Fixed project
Models to compare: Fixed project, value-based, and hybrid
Pricing references: A smaller project sold for $22,000 and used nearly all planned capacity

Sample assembled prompt

Input Audit The 25 percent reserve...
The model is mathematically valid.
The $150,000 client-value estimate should be...
Annual Revenue Target Compensation plus overhead:...
Keep a hybrid structure as the...
Package Options Focused: $30,500 for research,...
Require one final decision-maker, a deposit...

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Build a Freelance Business That Doesn't Depend on

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Build an end-to-end freelance operating system for finding qualified leads, pricing profitable work, controlling scope, delivering well, collecting payments, and growing recurring revenue.

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