Project Profitability Calculator

What project profitability means

Project profitability compares revenue with the real cost of delivery. That includes your internal labor cost, direct expenses, contractor costs and platform or payment fees.

After you quote a project with the Freelance Project Price Calculator, use this calculator to compare the quote with actual delivery costs.

Revenue vs profit

Revenue is the amount charged to the client. Profit is what remains after the project costs are accounted for. A project can have high revenue and still be weak if delivery costs are too high.

Internal hourly cost

Internal hourly cost is the value you assign to each hour of your own or your team's time. It can be based on payroll cost, target compensation, opportunity cost or a planning rate.

Platform/payment fees

Fees reduce project profit just like other costs. For more fee-specific pricing, use the Freelance Platform Fee Calculator.

Why fixed-price projects become unprofitable

Fixed-price work becomes less profitable when actual hours exceed the estimate. The Project Overrun Calculator focuses specifically on effective rate erosion from extra hours.

Example

A $5,000 project with 45 hours at $50 internal cost, $250 of expenses, $500 of contractor costs and a 3% fee has $3,150 of cost and $1,850 of profit.

FAQ

Can profit be negative?

Yes. Negative profit means the project cost more to deliver than it generated in revenue.

Is effective hourly revenue the same as profit per hour?

No. It shows revenue after external costs divided by actual hours. Profit per hour would also subtract internal labor cost.

What if I do not know my internal hourly cost?

Use a realistic planning rate. The result is only as useful as the cost assumptions you enter.