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How the profitability calculator works
Three steps and you're done:
*To get the most out of the profitability calculator, use your latest project data and see the impact on Margin in seconds
What "Profitability" Really Means
Profit isn't just what's left after an invoice goes out. It's what's left after every hidden cost is accounted for- hours, salaries, purchases, admin and overhead.
Most professional service firms and businesses that bill by the hour think they're profitable because the work is flowing in, but once you account for actual project delivery time, you'll often find 5-10% of your margin quietly leaking away.
The profitability calculator gives you a clean, fast snapshot of whats really happening behind the invoices.
Once you have your numbers, you can:
Why use the profitability calculator?
Here's what you'll get out of it:
- Real numbers. See what your projects actually make, not what you assume they make
- Better pricing. Stop undercharging for work that eats into your margin.
- Smarter planning. Forecast resourcing needsand revenue with real data
- Benchmarking. Compare projects or clients and find where you're winning (or losing)
- Team alignment. Give finance, operations and delivery teams oncesource of truth.
- Simplicity. Two minutes. Zero spreadsheets
This tool is made for anyone running a service business who wants a clearer picture of how healthy their projects really are.
What to do with the results
- Rework your pricing or scope before its too late
- Test what happens if you raise rates or improve utilisation
- Share the data with your team so everyone sees where profit is coming from (and where it's not)
Who's it for?
This tool is made for anyone running a service business who wants a clearer picture of how healthy their projects really are.
Founders who want to see which clients actually make money
Consulting partners juggling multiple projects and team costs
Finance leads who need faster, cleaner forecasts & reporting
Ops Managers who care about utilisation and delivery efficiency
Deliver more profitable projectsand see projec t revenue in real-time
step-by-step guide
How to Calculate Project Profitability
Add up what’s actually billed for the work - not what was quoted. Include retainers, change requests, and reimbursable expenses.
Include salaries (based on hours worked), external, purchases, and overhead. If you’re not sure about overhead, 10–15% is a safe starting point.
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Run a few projects through. See patterns. Maybe you’re undercharging, maybe one client is killing your average - now you’ll know.
Blog and articles
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