Client Profitability Calculator
Type what the client paid, the hours the work took, and the expenses you can tie to it. Profit is revenue minus those expenses. The effective hourly rate is that profit divided by the hours. This is a planning estimate, not bookkeeping.
Calculator
How the number is produced
Profit = revenue − expenses. Margin = profit ÷ revenue. Revenue per hour = revenue ÷ hours. Effective hourly rate = profit ÷ hours.
Worked example
€5,000 revenue, 20 hours, €1,000 expenses. Profit €4,000. Margin 80%. Effective rate €200 an hour. Revenue per hour is €250, before expenses.
When this is useful
Two clients pay similar invoices and one of them quietly takes twice the hours.
Limits
Costs you do not type are invisible. Tax and your own salary are not deducted unless you put them in expenses.
More on the assumptions is on how the calculators work.
Questions
Should I include my own time as an expense?
The hours field already divides profit by your time. Do not also subtract a salary for those same hours unless you mean a different cost.
Related tools
If a result disagrees with the formula on this page, email hello@gettowork.online.