Project profitability calculator
Enter what a project brought in, the hours worked on it, the average cost of an hour and any other direct costs. You get the margin, the margin as a share of revenue, revenue per hour worked, and the hours at which the project breaks even.
Last reviewed October 2026. Your numbers stay in your browser.
Your numbers
| Labour cost | $5,400 |
|---|---|
| Total cost | $5,900 |
| Margin | $6,100 |
| Margin as a share of revenue | 50.8% |
| Revenue per hour worked | $100 |
| Hours at which this project breaks even | 255.6 h |
How this is calculated
Labour cost = hours worked x average cost per hour. Total cost = labour cost + other direct costs. Margin = revenue - total cost. Break-even hours = (revenue - other costs) / cost per hour.
These are your own inputs, not a benchmark. The default values are placeholders to show how the sums work.
From a sketch to every project
A calculator shows one project at a time from numbers you type. Honest Day's profitability reports work from tracked hours: revenue at each project's billing rate, cost at each person's cost rate, margin by project, client or person. They are part of Premium; see project profitability.
Questions
How is margin calculated?
Margin is revenue minus cost. Cost is hours worked multiplied by the average cost rate per hour, plus any other direct costs you enter. Margin as a share of revenue is margin divided by revenue.
What is a cost rate?
What an hour of someone's time costs you: for a contractor, what you pay them per hour; for an employee, a loaded hourly cost that includes pay and overheads you choose to count. Use an average if several people worked on the project.
What does the break-even figure mean?
The number of hours at your cost rate at which labour cost would use up the project's revenue after other costs. Hours past that lose money.
How do I get these numbers without guessing?
Track the hours per project and give each person a cost rate. Honest Day's profitability reports then show revenue, cost and margin by project, client or person. Profitability reports are part of Premium.
Related
Try it with your own hours.
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