Accountants Project Cost Calculator
Estimate the cost, quote price and expected profit for an accounting project using hours, expenses, overheads and markup.
Overview
Use this Accountants Project Cost Calculator to estimate the full delivery cost of an engagement and build a quote using expected hours, internal staff cost, direct expenses, overhead, contingency and markup.
How it works
The calculator first multiplies estimated hours by the internal hourly cost to calculate labour cost. It then adds direct expenses and an overhead allocation. A contingency percentage is added to this base cost for potential uncertainty. Finally, the chosen markup is applied to the total project cost to produce a suggested quote. Expected profit is the difference between that quote and the estimated project cost.
How to use this calculator
- 1Enter the estimated hours needed to complete the project.
- 2Add the internal hourly cost for the staff delivering the work.
- 3Include any direct expenses that belong to the engagement.
- 4Set an overhead and contingency allowance that suits the project.
- 5Choose your target markup and review the suggested quote and profit.
Example Calculation
Estimated project hours
20
Hourly staff cost
$35
Direct project expenses
$100
Overhead rate
20%
Contingency allowance
10%
Target markup
30%
Suggested quote price
$1,344.20
With 20 hours at 35 per hour, 100 in expenses, 20% overhead, 10% contingency and 30% markup, the suggested quote is 1,344.20. Estimated project cost is 1,033.99 and expected profit is 310.21.
Frequently asked questions
What is included in project cost?
Project cost includes internal labour cost, direct expenses, allocated overhead and the contingency allowance you choose.
What is the difference between markup and margin?
Markup is added to cost to set a price. Margin is profit expressed as a percentage of the final selling price, so the two percentages are not the same.
Should I include partner or manager review time?
Include all expected delivery and review time if it creates a cost for the firm or affects the capacity needed to complete the engagement.
What direct expenses should be added?
Typical direct expenses can include subcontractor fees, project-specific software, filing charges, travel and specialist reports, where applicable.
Why add a contingency allowance?
Contingency helps account for uncertain scope, missing information, client queries, rework and other unexpected delivery requirements.
Does the suggested quote include tax?
The calculator does not separately calculate sales taxes or other taxes. Add or present these according to the applicable requirements and your engagement terms.
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Assumptions and warnings
Assumptions
- Hourly staff cost reflects the internal cost of delivering the work, rather than the client billing rate.
- Overhead is allocated as a percentage of labour cost only.
- Contingency is applied to labour, direct expenses and allocated overhead.
- Markup is applied after all estimated costs and contingency have been included.
- Results are planning estimates and exclude taxes unless you include them in the entered costs.
Warnings
- This calculator provides an estimate only and is not financial, tax or accounting advice.
- Review the project scope, engagement terms and costs before sending a client quote.