Project Profitability Calculator
After paying your team, what's actually left from this project?
Calculate project profit, margin and effective rate from revenue, hours and hourly costs. Free calculator, no signup.
Frequently Asked Questions
Is cost per hour my hourly rate or my actual costs?
Your actual costs. If you pay a developer $80 per hour and a designer $60 per hour, your blended cost is the weighted average across all hours worked on the project — not what you charge the client.
Should I include overhead in cost per hour?
For a true picture of profitability, yes. Add a share of rent, software, and admin costs to your direct labor rate. A common approach is to calculate your fully-loaded cost per billable hour once per quarter and use that figure here.
What is a healthy project margin?
Most agencies target 40 to 60 percent gross margin per project. Below 30 percent leaves too little to cover overhead and profit. Above 70 percent often signals you are underdelivering or the project was scoped very tightly — both worth examining.
How is this different from utilization rate?
Utilization measures what share of available hours become billable work. Project profitability measures whether that billable work actually earns money once costs are paid. You can have high utilization and still run unprofitable projects if your rates are too low or your cost base is too high.
Can I track this automatically in Teetrack?
Yes. Teetrack links logged hours directly to projects, so your actual team cost accumulates in real time as people track. You set the project budget and cost rates once; the margin updates automatically as hours come in.