Basta+Croop · The Profitable Agency

Project Margin Calculator

Blend true labor cost from your accounting system with hours from your project management tool to see real, per-project gross margin.

Project name

1 · Cost per hour, by role

Pull true annual cost (wages + payroll tax + benefits) from Xero or your payroll provider. Update quarterly — roles don't change often.

Role	True annual cost	Billable hours / yr	Cost / hour

2 · This project

Enter what was billed, then log hours by role from your project management tool.

Amount billed ($)

Hours logged by role

Results

Directional, not GAAP-precise — a decision-making number, not an accounting one.

True labor cost

Gross margin

Gross profit

0%50%65%70%100%

This number is directional. It uses a blended hourly rate and doesn't capture allocated overhead or non-billable time spent on the project. Use it to spot pricing and scope problems — not as an accounting figure.

Basta+Croop

Project Margin Summary

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Amount billed

True labor cost

Gross margin

Role	Hours	Cost / hr	Labor cost

Gross margin reflects direct labor cost only, based on a blended hourly rate from payroll and hours logged in your project management tool. It does not include allocated overhead. Healthy agency benchmark: 50–65% gross margin on direct labor, with staff utilization in the 75–85% range. Prepared as part of The Profitable Agency Scorecard framework — bastacroop.com.