Project Profitability Calculator

Because scope creep, untracked meetings, revisions, and internal coordination eat into hours that never show up in project budgets. Without accurate time tracking, the real cost is invisible until the project ends over budget.

It varies by industry, but most service businesses target 20% to 40% net project margin. Below 15% leaves little room for overhead and risk. If a project dips below 10%, it is likely costing more than it earns.

Take the fully loaded cost of an employee or contractor, including salary, benefits, taxes, and allocated overhead, and divide by the number of billable hours they produce. This is the real cost of an hour of their time.

For the most accurate picture, yes. Overhead like office rent, tools, and management time should be allocated proportionally. At minimum, use a fully loaded internal cost rate rather than just raw salaries.

At least at project milestones and always at completion. Checking mid-project lets you course-correct pricing or scope before the margin disappears entirely.