Project Profitability Calculator

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.

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.

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.

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.

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.