Agency Margin Calculator

Calculate your agency's profit margin on projects and clients.

🧑‍💻

Agency Profit

Enter the project revenue and costs to see your margin.

Net profit margin
0%
Net profit: $0
Gross revenue
$0
Total costs
$0
Gross profit
$0
Gross margin
0%
Net profit
$0
Blended hourly rate
$0

Worked example

With the default inputs shown below, this calculator returns the following results:

InputValue
Project revenue ($)$50,000
Billable hours200
Effective hourly rate ($)$150
Employee cost per hour ($)$75
Overhead & other costs ($)$5,000
ResultValue
Net profit margin60.0%
Gross revenue$50,000
Total costs$20,000
Gross profit$20,000
Gross margin40.0%
Net profit$30,000

Values shown are produced by this page in your browser; change any input to update them.

How to use the Agency Profit

  1. Project revenue ($) — default $50,000
  2. Billable hours — default 200
  3. Effective hourly rate ($) — default $150
  4. Employee cost per hour ($) — default $75
  5. Overhead & other costs ($) — default $5,000
  6. Press Calculate to update the results instantly.

Frequently asked questions

Agencies commonly target a 10-20% net margin. Below 10% leaves no buffer for slow months; above 20% is strong for a service business.
Net margin = (project revenue − direct costs − overhead) ÷ revenue. Include the salaried time spent on the account, not just freelancer costs.
Revenue is recognised when invoiced but cash arrives later. Unbilled work in progress and slow payers are the usual causes.

Sources & references