Basta+Croop · The Profitable Agency

Hiring & Capacity Calculator

Test a hire against the numbers before it's made — whether the labor budget has room, whether revenue supports it, and whether cash covers the ramp.

Client

Role being considered

1 · Current financials

Rolling 12-month figures from the client's accounting system, plus current cash position.

Rolling 12-month revenue

Rolling 12-month gross profit

Rolling 12-month true labor Wages + payroll tax + benefits + subcontractors + owner pay and distributions

Rolling 12-month operating expenses Including labor

Cash on hand

2 · The hire

Projected cost over the next twelve months, not a historical figure.

Salary / wage, next 12 months

Payroll tax rate (%) Typically 7–9%

Benefits cost, next 12 months

Revenue tied to this hire 12-month estimate. Leave at 0 if none is directly attributable.

Ramp time (months) Months before the hire is expected to pay for itself

This hire replaces an existing employee or contractor

Results

Labor budget assumes operating expenses stay at 90% of gross profit. Healthy labor ROI is revenue of at least 2.0× true labor.

Fully-loaded cost

New true labor

Projected labor ROI

0.00

Advisor notes

Context, caveats, or follow-up items. These carry through to the client memo.

This is a decision-making tool, not a forecast. It tests one hire against trailing twelve-month figures and doesn't model changes to pricing, utilization, or client mix. Pair it with the Utilization and Project Margin calculators before committing to a hire.

Basta+Croop

Hiring & Capacity Plan

—

Net new labor cost

Projected labor ROI

0.00

Cash needed for ramp

Recommendation

—

The numbers

Measure	Value	Status

Labor budget assumes total operating expenses hold at 90% of gross profit; the remainder after non-labor expenses is what's available for labor. Healthy labor ROI is revenue of at least 2.0× true labor; below 1.5× is treated as at risk. Figures are based on rolling twelve-month actuals and a projected cost for the role — they don't model changes to pricing, utilization, or client mix. This memo is a starting point for a conversation with your advisor, not a substitute for it. Prepared as part of The Profitable Agency Scorecard framework — bastacroop.com.