How to Price Your First Freelance Software Project: A Practical Walkthrough

Dec 13, 2025

A clear, step-by-step approach to freelance project pricing so you land your first software client confidently, avoid losses, and get paid what you’re worth.

Written by: Devika Iyer

The nervous excitement before you send your first price

You’ve just won your first client — or you’re about to ask one for money. The code part you understand, but putting a number on your time feels like guessing. Quote too low and you work for pennies; quote too high and you lose the client. I’ve seen this exact hesitation dozens of times with first-time freelancers. Pricing isn’t mysterious. It’s a repeatable process you can learn and refine.

This walkthrough gives you a practical, realistic way to think about freelance project pricing for software work: how to break scope down, pick a pricing model, factor in buffers, and phrase terms so you’re protected. Treat it like building a small product: measure, estimate, iterate.

Why pricing is a product problem, not just math

Most new freelancers treat pricing like a calculator problem: hours times rate. That’s a start, but it misses critical pieces. Pricing is actually a product decision — it’s about perceived value, risk allocation, and how you and the client divide uncertainties.

A 40-hour fixed-fee project and a 40-hour hourly project feel the same to clients at first glance, but they behave very differently when requirements shift, integrations break, or approvals delay. When you design your price, decide who absorbs which risks: scope changes, bugs, third-party issues, or late feedback. That decision should guide whether you choose hourly, fixed, or value-based pricing.

Also remember your price signals something about you. Very low quotes can invite micromanagement; higher, well-explained quotes attract clients who value reliability and outcomes. Freelance project pricing isn’t just the number—it’s the story you tell around that number.

The simple framework I use for freelance project pricing

Here’s a four-step framework you can apply right away.

1. Define the scope in small chunks

   • Break features into discrete tasks: authentication, database design, API endpoints, UI screens, testing, deployment.
   • For each chunk, note assumptions (e.g., “client provides API spec”, “design assets ready”).

2. Estimate time and uncertainty

   • For every chunk, estimate a best-case, likely, and worst-case time (e.g., 4 / 6 / 10 hours).
   • Use the likely estimate as baseline. The spread tells you how risky that chunk is.

3. Choose a pricing model based on risk and relationship

   • Hourly: good when scope is unclear and client wants flexibility. You get paid for all hours, but clients may be price-sensitive.
   • Fixed-price (milestones): better when scope can be defined and you can split delivery into measurable phases.
   • Value-based: when your work delivers quantifiable business value (e.g., reduces churn, increases revenue). This requires strong trust and data.
   • Hybrid: hourly for discovery + fixed for delivery is often the safest first approach.

4. Convert estimates into a price

   • If hourly: pick a rate (see next section), multiply by likely hours, and add a contingency (10–25% depending on uncertainty).
   • If fixed: add contingency, allocate buffer into later milestones, and make acceptance criteria clear.
   • Always account for taxes, fees, and non-billable time (admin, calls, bug fixes).

Use the term “contingency” rather than “profit” in conversations — clients understand buffers for uncertainty.

How to pick a sensible rate (and what to include)

Picking a rate feels personal, but there’s a practical way to approach it.

• Calculate your baseline: how much do you want monthly (take-home)? Add business costs (software, subscriptions, equipment), taxes, and target savings. Divide by billable hours per month (realistic number, e.g., 60–80 hours for many solo devs).
• Market-check: glance at marketplaces and peers for similar skills and client types. Don’t obsess; use this as a sanity check.
• Adjust for value and risk: charge more for specialized skills, tight timelines, or high-accountability work.

Example: You want ₹75,000 net/month, estimate business/tax ~30% → gross needed ₹97,500. If you expect 70 billable hours/month, hourly rate ≈ ₹1,400. Round up to a clean number and package as daily or per-milestone rates if clients prefer that.

What to include in the rate:

• Development time
• Project management and meetings (explicitly estimate or bill at a reduced rate)
• Basic testing and one round of revisions
• Small deployment tasks

What to charge extra for:

• Major scope changes
• Third-party costs (APIs, hosting beyond a basic amount)
• Ongoing support and maintenance (offer as a retainer)

Freelance project pricing also benefits from packaging. Offer a “launch bundle” that includes deployment and a short support window; clients understand packaged offers and often prefer the clarity.

How to actually write the quote (so you get fewer surprises)

A clear proposal reduces back-and-forth and prevents scope creep.

• Lead with outcomes: what the client will get (e.g., “User signup, dashboard, and two reports”).
• Deliverables & acceptance criteria: be specific about what counts as done.
• Assumptions: list what the client must provide (designs, API keys, staging access).
• Timeline & milestones: split the project into 2–4 milestones with deliverables and payments tied to them.
• Price & payment terms: show the total and milestone payments; include late fees or a deposit (commonly 20–50%).
• Change-request process: say how changes are estimated and billed.
• Warranty/bug-fix window: offer a 14–30 day window for fixes included, then hourly billing.
• Cancellation clause and IP/ownership terms: state what happens if either party stops.

Include a simple signature line. If they sign, congratulations — you have a contract. If they ask for changes, re-run your estimate and be explicit about the new price.

Quick wins to try today

• Add a 15% buffer to any fixed-fee you give for the first three projects. Track actual vs estimate and adjust.
• Always ask for a deposit. 30% upfront is normal and reduces late-payment headaches.
• Offer two quote options: “standard” (what you expect) and “accelerated” (higher price, shorter timeline). Many clients pick certainty.
• Keep a pricing template: task list, likely hours, worst-case hours, price calculation. Use it every time so you build historical data.

Handling scope creep without friction

Scope creep will happen — it’s how you handle it that matters.

• If something new appears, refer to the assumptions and change-request clause in your proposal.
• Give options: “We can add X for Y hours at ₹Z/hour, or include it in a later milestone for a lower combined cost.”
• Be firm but polite. Clients often don’t know the time required for technical work; your role is to translate.

When the client’s budget is fixed, work with them on prioritization. Offer an MVP-first approach: build the smallest useful slice, prove value, then expand.

Wrapping Up

Pricing your first freelance software project feels like stepping into the unknown, but it doesn’t have to be guesswork. Break the work into clear pieces, estimate likely effort, choose the pricing model that fits the risk, and build a proposal that leaves no ambiguous corners. Use contingency, ask for a deposit, and treat each project like a learning opportunity — track the gaps between estimate and reality and refine your approach.

Start with one well-structured quote this week. That first confident price will teach you more than dozens of tentative ones ever will.