Project budget template (for client projects)
A project budget lists every expected cost of a project, labor, tools, outside services and a contingency, and compares them with what the project earns or is allowed to spend. For agencies and freelancers it answers two questions: is this project priced to make money, and, during delivery, is it still on track?
What should a project budget include?
A project budget should include labor by role or phase, outside costs such as contractors and software, a contingency of 10 to 20 percent, the total cost, the price charged and the margin.
The template
Build it by phase, so you can compare actuals as each phase finishes.
| Line | Estimate | Actual | Notes |
|---|---|---|---|
| Phase 1: discovery (hours × rate) | |||
| Phase 2: design (hours × rate) | |||
| Phase 3: build (hours × rate) | |||
| Phase 4: launch and training (hours × rate) | |||
| Contractors | |||
| Software and licenses | |||
| Other direct costs | |||
| Contingency (10 to 20 percent) | |||
| Total cost | |||
| Price charged to client | |||
| Margin (price minus cost, and as a percent) |
Use your internal cost per hour for labor, not the rate you charge, so the margin line is real.
What does a completed project budget look like?
A completed project budget shows estimated and actual cost per phase, includes a contingency, and ends with the margin in dollars and percent.
Fieldwork Studio's budget for the Northwind Bakery website, at an internal cost of $55 an hour. Names are invented.
| Line | Estimate | Actual |
|---|---|---|
| Discovery: 12 hours | $660 | $715 |
| Design: 36 hours | $1,980 | $2,200 |
| Build: 52 hours | $2,860 | $3,520 |
| Launch and training: 12 hours | $660 | $770 |
| Photography direction (contractor) | $600 | $600 |
| Ordering provider setup | $150 | $150 |
| Contingency, 15 percent | $1,040 | none used |
| Total cost | $7,950 | $7,955 |
| Price (including change order CO-01) | $13,800 | $13,800 |
| Margin | $5,850, 42% | $5,845, 42% |
Labor ran 19 hours over the estimate, mostly waiting on content, and the contingency absorbed it. The lessons learned review turned that into a buffer on future quotes.
How do I build an accurate project budget?
Build an accurate project budget from past projects' actual hours, price the work by phase, add a contingency, and check it against actuals at every milestone.
- Start from actuals, not hope. Use logged hours from similar past projects as the baseline.
- Estimate by phase, not as one total. Overruns are easier to spot and explain.
- Add contingency openly. 10 to 20 percent depending on how new the work is.
- Price changes separately with a change order rather than spending contingency on new scope.
- Review at each milestone. Compare estimate and actual, and tell the client early if scope is drifting.
- Keep the client-facing price separate from the internal cost sheet. The project proposal shows the price; the budget is for you.
How is a project budget different from a quote?
A quote or proposal is the price you offer the client; a project budget is your internal plan of what the work will cost to deliver, used to protect your margin and track spending during the project.
How can I track project budgets in Flori?
In Flori, tasks have a time log, so hours sit with the work and you can compare them with the estimate, and on Premium you can record invoices, payments received and the project's value against the project and client.
Flori is a CRM with project management for freelancers, agencies and small teams; the deal value and the delivery project sit in one workspace. Flori does not send invoices or collect payments, so keep using your accounting or invoicing tool for that. An assistant such as Claude or ChatGPT connected to your workspace can total logged time by phase and draft a budget update for you to review.
FAQ
What is a project budget? A project budget is an estimate of all the costs needed to deliver a project, labor, tools, outside services and contingency, compared with the price or the funding available. During the project it is updated with actual costs.
How much contingency should a project budget have? Ten percent for familiar work you have done many times, 15 to 20 percent for new types of work or projects that depend on third parties. Track whether you used it, and adjust next time.
Should labor be budgeted at cost or at the billing rate? At cost, meaning what an hour actually costs you including salary, overheads and tools. Budgeting at the billing rate hides your real margin.
How often should I update the project budget? At every milestone, and weekly on larger projects. The earlier you see an overrun, the more options you have: reduce scope, use contingency or raise a change order.
What is a good margin on agency projects? It varies by service, but many small agencies aim for 40 to 60 percent gross margin on project work. Track your own numbers over several projects rather than relying on averages.
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