Why do I need to add rates if I only use flat fees?

Why do I need to add rates if I only use flat fees?

Why do I need to add rates if I only use flat fees?

last updated at Oct 13, 2025

That’s a great question and one we get quite often.

Let’s break it down:

When you create a proposal or invoice in Fugoya, you can either set a flat fee or enter line items in hours or days — both approaches lead to the same thing: a final amount your client will pay.

For flat-fee projects, that’s actually the simplest case.

On the Project level, you’ll see the trio of Hours / Rate / Budget. This isn’t meant to make things complicated — it’s just a convenient way to calculate or sanity-check your project budget.

  • For hourly projects, you’ll typically enter the expected hours and maybe tweak your rate to hit the desired budget.

  • For flat-fee projects, you’ll enter your flat fee, and Fugoya will automatically calculate how many hours that amount would represent at your typical rate.

So why does that matter if you already have a fixed price? Because while invoicing doesn’t depend on how long you worked, your business planning absolutely does.

Let’s take an example:

You agreed on a flat fee of $20,000, and your usual hourly rate is $100/h.
That means this project “represents” about 200 hours.
If you end up spending less time, you negotiated well.
If it takes 300 hours, you’ll know the next time you might want to charge more.

In short: Fugoya asks you to ballpark a rate so you can convert your flat fees into time.

That helps you:

  • Plan your workload more accurately

  • See how profitable each project really was

  • Negotiate smarter rates for future proposals

You can even see this visually in Project → Time Tracking, where Fugoya shows your markup indicator — a quick glance at whether you stayed within your “budgeted” hours:

®

2025

Fugoya GmbH

Fugoya and the F Logomark are registered trademarks in the European Union.

®

2025

Fugoya GmbH

Fugoya and the F Logomark are registered trademarks in the European Union.

®

2025

Fugoya GmbH

Fugoya and the F Logomark are registered trademarks in the European Union.