Accountants Profit Target (Monthly) Calculator Examples
Worked examples showing how accounting practices can turn monthly profit goals into revenue and client targets.
These examples use different overhead, margin, and pricing assumptions to show how a monthly profit target can affect required fee income. They are illustrations only and should be adapted to the practice's own service mix and cost structure.
Established practice with a modest revenue gap
A firm with £30,000 of recurring monthly overheads currently bills £50,000 a month.
Input Summary
Target monthly profit
£15,000
Fixed costs
£30,000
Variable cost rate
20%
Current monthly revenue
£50,000
Average client fee
£1,000
Working days
20
Calculation Breakdown
- 1Contribution margin1 - 0.2080%
- 2Revenue required(£15,000 + £30,000) / 0.80£56,250
- 3Revenue gap£56,250 - £50,000£6,250
- 4Equivalent clients£6,250 / £1,0006.3 clients
Result Summary
Equivalent clients
6.3 clients
Accountants Profit Target (Monthly) Calculator
Required monthly revenue is £56,250, with a £6,250 gap and a daily target of about £2,813.
Practice already above its target revenue
A sole-led or lean practice has £18,000 of fixed costs and £35,000 of current monthly fee income.
Input Summary
Target monthly profit
£10,000
Fixed costs
£18,000
Variable cost rate
10%
Current monthly revenue
£35,000
Average client fee
£750
Working days
20
Calculation Breakdown
- 1Contribution margin1 - 0.1090%
- 2Revenue required(£10,000 + £18,000) / 0.90£31,111
- 3Revenue gapmax(0, £31,111 - £35,000)£0
- 4Daily revenue target£31,111 / 20£1,556 per day
Result Summary
Daily revenue target
£1,556 per day
Accountants Profit Target (Monthly) Calculator
The practice's current £35,000 monthly revenue is about £3,889 above the estimated £31,111 revenue requirement.
Growing firm with higher delivery costs
A firm seeks £25,000 monthly profit with £60,000 of fixed costs, 30% variable costs, and £90,000 current monthly revenue.
Input Summary
Target monthly profit
£25,000
Fixed costs
£60,000
Variable cost rate
30%
Current monthly revenue
£90,000
Average client fee
£1,500
Working days
20
Calculation Breakdown
- 1Contribution margin1 - 0.3070%
- 2Revenue required(£25,000 + £60,000) / 0.70£121,429
- 3Revenue gap£121,429 - £90,000£31,429
- 4Equivalent clients£31,429 / £1,50021.0 clients
Result Summary
Equivalent clients
21.0 clients
Accountants Profit Target (Monthly) Calculator
The firm needs estimated monthly revenue of £121,429, or around £6,071 per working day, to meet the target.
How to Read Your Results
Required monthly revenue is the estimated fee income needed to cover variable costs, fixed costs, and the profit target.
A revenue shortfall of zero means current revenue meets or exceeds the calculation, not that actual profit is guaranteed.
Equivalent clients are based on an average fee; a mix of services can reach the same revenue with a different client count.
Required daily revenue is a planning average and does not mean revenue must arrive evenly every day.
Assumptions & Important Notes
- Figures are monthly and use a consistent currency.
- Variable costs are estimated as a stable percentage of revenue.
- The average monthly client fee is representative of expected recurring work.
- Examples exclude business tax and items not entered as costs.
Related Examples
Frequently Asked Questions
Can this calculator be used for a bookkeeping practice?
Yes. Enter the bookkeeping practice's profit goal, costs, variable-cost estimate, current fee income, and typical client fee.
Can I use one-off project revenue in the current revenue input?
You can, but the result is most useful when current revenue reflects a typical and repeatable monthly level.
Why might a higher-fee client target reduce the client number shown?
The revenue shortfall stays the same, but each client contributes more revenue when the average monthly fee is higher.
Should I use 20 or 22 working days?
Use the number that best reflects the normal working days available in the month being planned.
Ready to calculate your own result?
Use the live calculator with your own inputs, timing, and preferences.