Typed example: a $3,200 offer against a $95 hourly floor breaks even at 33.68 hours. At 40 hours the effective rate is $80.00 and hourly would pay $600.00 more.
Updated Oct 2026
$3,200.00 ÷ $95.00 = 33.68 h. $3,200.00 ÷ 40 h = $80.00/hr. 40 × $95.00 − $3,200.00 = $600.00 (hourly pays more).
Break-even hours = flat fee ÷ hourly floor. Effective hourly = flat fee ÷ hours. Gap = hours × hourly floor − flat fee. A positive gap means the hourly floor would pay more. If you type an overrun share, the after-overrun rate is the flat fee ÷ (hours × (1 + that share)).
Also: quote a project · not to exceed · change order · revision round · minimum fee · set a rate · kill fee · package tiers
When the hours you expect stay under the break-even hours. Break-even hours are the flat fee divided by the hourly floor you type. Past that point the same hours at your floor would pay more.
Divide the flat fee by the hours you type. That is the effective hourly rate.
Calls, revisions, and admin, if they are part of doing the job. Type the total you expect, not drafting time alone.
The gap line shows how much the hourly floor would have paid above the flat fee. A change order or a not-to-exceed cap is a separate card.
Only if you type an overrun share. Effective rate after overrun is the flat fee divided by hours times (1 plus that share). A project quote with its own buffer is a separate card.