Skip to main content

Time & Material vs Fixed Price

E
Written by Elvia Amelia
Updated over 7 months ago

1. Time & Material Projects

This option is ideal when you can't predict how long the project will take. You set the price to "0" initially, and the final cost is calculated based on the actual hours worked and invoiced after the project is completed.

2. Fixed Price Projects

Choose this option when you know the price upfront. The cost is set before starting the work, but you can adjust it later if needed.

What If I Don’t Know How Much Time I’ll Spend?

If you’re unsure about the time needed for a project, here are two options:

1. Time & Material Project

Create a Time & Material project with an initial amount set to "0." After the work is done, you can invoice based on the actual time spent and the hourly rate.

2. Fixed Price Project

Alternatively, you can create a Fixed Price project after completing the work and knowing the time spent. You can then submit the invoice based on the actual time.

Both options work if you trust your customer enough to start without a fixed price.

Did this answer your question?