Know when the agreed fee stops paying for your time.
Put the agreed price on the project or phase, then track the hours needed to deliver the agreed work. Phased compares the two and shows the effective hourly rate: the price divided by the hours. A €2,700 phase completed in 24 hours earns €112.50 per hour. If it takes 45 hours, that falls to €60 per hour.
The price stopped moving. The hours did not.
You agreed the price before you knew exactly how long the work would take. Every extra hour spent delivering the agreement lowers what that fixed fee earns per hour.
Track the fee and the hours together while the job is open. You can catch an overrun early, manage the remaining work, and use the final result when you price the next project.
Where does the agreed price go?
Put the agreed amount on the project or phase as its budget. Phased can then compare the price with the hours spent delivering the agreed work. This is what turns a time total into a useful profitability reading.
A small job can keep one budget and never show a phase list. If the work becomes more complex, add phases later. The hours you already logged remain in the project.
Does Phased stop you when a phase goes over?
No. You can always keep logging time. The budget status changes and the effective rate falls, but Phased never blocks the entry or decides that the work must be outside the agreement.
That distinction matters. The original work may simply have taken too long, or the client may have asked for something new. Phased shows the numbers; you decide which situation applies.
What is your effective rate telling you?
Your target rate is what you want the work to earn. The effective rate is what the fixed price is currently earning: the agreed amount divided by the hours spent on the agreed work. A €2,700 phase completed in 24 hours earns €112.50 per hour. At 45 hours, it earns €60.
The number will look high near the start because the calculation already includes the full price. Watch how it changes as the phase progresses. The final effective rate becomes most useful after the work is complete.
What do the four budget labels mean?
The budget label compares the hours used with the hours allowed by the price and your target rate. It gives you an early warning, while the effective rate tells you what the work is earning. Every budgeted row has one of these labels:
- On track: less than 80% of the budget used
- Approaching: from 80% through 100% of the budget used
- Over budget: more than 100% of the budget used
- No budget: no budget has been set for the row
What if the overrun was not your estimate's fault?
First check whether the work was part of the agreement. An extra revision round, another format, or a call that became a new brief may be an added request rather than a bad estimate.
Mark those entries Out of scope. Their hours stay in your records but stop affecting the budget and effective rate for the agreed work. On Pro, price them separately and include them on a Phase or Project Report as Additional Work.
How does a finished project help you price the next one?
When the work is complete and no more time is added, the effective rate shows what the fixed price earned per hour. Mark the phases done and archive the project when it no longer needs to stay active.
Compare several similar projects. Their actual phase hours and final rates give you a stronger basis for the next proposal than memory alone. Raise the fee, reduce what is included, or plan more hours where the evidence says you need them.
Common questions
Is the budget a hard limit?
No. Phased keeps accepting time after the budget is used. The extra hours change the budget status and effective rate, but they do not change the scope automatically. Mark an entry Out of scope only when it covers work outside the agreement. Client reports call that marked work Additional Work.
What if I do not know the phases when I quote?
Start with one budget for the whole project. Phased keeps a single phase in the background, so the setup stays simple. If the shape of the work becomes clear later, add visible phases. The time you already recorded stays in the project.
Do out-of-scope hours drag the rate down?
No. Out-of-scope hours stay in your time records but stop affecting the budget status and effective rate for the agreed work. On Pro, you can give them a separate price and include them on a Phase or Project Report as Additional Work.
Is this on the free plan?
Free tracks hours against hour budgets and values client time at your default rate. Pro adds fee-based budgets, custom rates by project or phase, budget warnings, and effective-rate analysis. Every account starts with a 30-day Pro trial.