Finance & Economics / Freelance & Creator Finance
Project Profitability Calculator
Total amount client pays
Total time spent on project
Materials, software, contractors, etc.
Your desired rate per hour
About Project Profitability
Formulas:
- Project Profit = Project Fee - (Direct Expenses + Hours × Hourly Rate)
- Profit Margin = (Project Profit / Project Fee) × 100
- Effective Hourly Rate = (Project Fee - Direct Expenses) / Hours Worked
What to track: Compare your effective hourly rate to your target rate. If it's lower, consider raising your prices or reducing time spent.
Healthy margins: Most service businesses aim for 20-40% profit margins. Below 20% leaves little room for unexpected costs.
See Also
Other calculators in Freelance & Creator Finance