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Engagement Profitability CalculatorMargin on Direct Labor

What do the numbers come to once the work is shown?

Margin in dollars and percent, and fee per hour, from fees collected, hours and cost rates by level, and unreimbursed costs.

  • Runs in your browser
  • Nothing stored or sent
  • Free, no sign-up
Your figures
Example figuresIllustrative only. Type over them with your own.
Margin
$29,800
Fees collected less direct labor and costs
Direct cost
$15,200
Margin percent of fees
66.22%
Drawn to one scale
Direct cost$15,200
Margin$29,800
Fees per hour$161
Direct cost per hour$54
All results
MeasureResult
Direct cost$15,200
Margin$29,800
Margin percent of fees66.22%
Fees per hour$161
Direct cost per hour$54
How this was worked out
Work shownrecomputed as you type
Direct cost = sum of (hours x cost per hour) + unreimbursed costs
Margin = fees - direct cost
Margin % = margin / fees

Illustrative arithmetic on the figures you enter. Check the result against your firm's methodology before relying on it.

The formulas

  • Direct cost = sum of (hours x cost per hour) + unreimbursed costs
  • Margin = fees - direct cost
  • Margin % = margin / fees

How it works

Cost per hour is what each level costs you, not the rate you charge. The margin here is before overhead, so it shows what the engagement contributes to overhead and profit.

Illustrative figures only. Check the result against your firm's methodology before relying on it.

Common questions

Why before overhead?

Overhead allocations are a policy choice and change the answer. Use the billing rate from cost calculator to bring overhead in.

Formulas on this page are the standard definitions.

Runs in your browser. The figures you type are not sent to CORAA or stored. Check the result against your firm's methodology before relying on it.

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