Accountants Project Profit (Daily) Calculator
Estimate the daily profit and profit margin for an accounting project using your daily fee, labour cost, direct costs and overhead allocation.
Overview
This daily project profit calculator helps accountants and practice managers estimate the profit from a day of client work. Enter the daily fee, delivery labour cost, direct project expenses and an appropriate share of business overheads to see the estimated profit and margin.
How it works
The calculator starts with the daily amount billed to the client. It adds daily labour costs, direct expenses and allocated overheads to calculate total daily delivery cost. Daily project profit is the client fee minus that total cost. The profit margin shows this profit as a percentage of the daily fee, making it easier to compare projects with different billing rates.
How to use this calculator
- 1Enter the daily fee charged to the client.
- 2Add the total daily cost of employees or contractors delivering the work.
- 3Include project-specific daily expenses such as travel or software.
- 4Allocate a reasonable daily share of practice overheads.
- 5Review the estimated daily profit and profit margin.
Example Calculation
Daily client fee
$1,200
Daily labour cost
$550
Daily direct costs
$75
Daily overhead allocation
$125
Daily project profit
$450
With a daily client fee of 1,200 and total daily costs of 750, the estimated daily project profit is 450 and the profit margin is 37.5%.
Frequently asked questions
What is daily project profit?
Daily project profit is the revenue earned from a project day minus the labour, direct expenses and allocated overhead costs associated with delivering that day of work.
How do I calculate a daily project profit margin?
Divide daily project profit by the daily client fee, then multiply by 100. The calculator performs this calculation automatically.
Should overheads be included in project profitability?
Including an appropriate overhead allocation can give a fuller view of profitability because projects use shared resources such as management, premises, technology and administration.
What costs count as direct project costs?
Direct costs are expenses specifically linked to the client project, such as subcontractor fees, travel, specialist software, data purchases or materials.
Why can actual project profit differ from this estimate?
Actual results can change when work takes longer than planned, scope changes, staff costs vary, expenses are missed or time cannot be billed to the client.
Can this calculator be used to compare client engagements?
Yes. Use consistent cost assumptions for each engagement to compare estimated daily profit and margin across clients, service lines or pricing options.
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Assumptions and warnings
Assumptions
- The daily client fee represents revenue earned for one full project day.
- Labour, direct costs and overhead allocation are estimated on a consistent daily basis.
- The calculation excludes VAT or sales taxes, corporation tax, financing costs and any costs not entered.
- Results are estimates and actual project profitability can differ because of scope changes, write-offs or unbilled time.
Warnings
- This calculator provides an estimate only and is not accounting, tax or financial advice.
- Review actual time records, invoices and costs before making pricing or staffing decisions.