Accountants Project Cost (Monthly) Calculator
Estimate the monthly cost of delivering accounting work, set a target client fee, and review the expected profit.
Overview
Use this Accountants Project Cost (Monthly) Calculator to estimate the ongoing cost of a client engagement. Enter planned monthly hours, the average staff cost, allocated overheads, other direct costs, and your target profit margin to calculate a suggested recurring fee.
How it works
The calculator first multiplies planned monthly hours by the average hourly staff cost to estimate labour cost. It then adds allocated overhead and other direct project costs to find the monthly project cost. The suggested fee is calculated by dividing that cost by one minus the target profit margin, so the remaining portion of the fee is intended to represent profit.
How to use this calculator
- 1Enter the total hours you expect the team to spend on the project each month.
- 2Add the average fully loaded hourly cost of the staff assigned to the work.
- 3Include the project’s monthly share of business overheads.
- 4Add any direct monthly costs, such as specialist software or subcontractors.
- 5Choose the profit margin you want to achieve and review the suggested client fee.
Example Calculation
Monthly project hours
80
Average hourly staff cost
$45
Monthly overhead allocation
$750
Other monthly project costs
$150
Target profit margin
30%
Estimated monthly project cost
$4,500
With 80 monthly hours at a staff cost of 45 per hour, plus 900 in monthly overhead and direct costs, the estimated project cost is 4,500. A 30% target margin suggests a monthly client fee of about 6,429 and estimated profit of about 1,929.
Frequently asked questions
What is included in monthly project cost?
It includes planned labour cost, the overhead amount you allocate to the engagement, and any other direct monthly project costs you enter.
How is the recommended monthly fee calculated?
The calculator divides the estimated monthly project cost by one minus your target profit margin. This estimates the fee needed to leave the selected share of revenue as profit.
What hourly staff cost should I use?
Use an average fully loaded hourly cost where possible, including pay and relevant employment costs. A blended team rate can be useful when several roles work on the project.
Should overhead be included in client pricing?
Including a reasonable overhead allocation can help ensure recurring work contributes to the wider costs of operating the firm, not just direct staff time.
Does the calculation include VAT, GST, or other sales taxes?
No. Enter costs on a consistent basis and add any applicable sales taxes separately when preparing a client quote or invoice.
Why might actual project profit differ from this estimate?
Profit can change when actual hours, scope, staffing mix, write-offs, software use, or other costs differ from the assumptions used in the calculation.
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Assumptions and warnings
Assumptions
- All figures use the same currency and exclude sales taxes such as VAT or GST.
- Hourly staff cost represents the average fully loaded cost of the people assigned to the work.
- Overhead allocation and other project costs are assumed to occur each month.
- The recommended fee is an estimate based on the planned hours and selected profit margin.
Warnings
- This calculator provides a business pricing estimate only and is not financial or professional advice.
- Actual profitability may differ if project scope, staffing, recoveries, write-offs, or costs change.