Accountants Project Profit (Hourly) Calculator Examples
Worked hourly accounting project profitability examples covering write-offs, staffing costs, overhead, and direct expenses.
These examples show how different engagement sizes, rates, staffing costs, and write-off assumptions affect expected profit. Each result is an estimate before tax and should be compared with the firm's own targets and actual project data.
Routine bookkeeping engagement
20 hours at $110 per hour, a 3% write-off allowance, $48 staff cost per hour, and $15 overhead per hour.
Input Summary
Billable hours
20 hours
Hourly billing rate
$110
Write-off rate
3%
Staff cost per hour
$48
Overhead per hour
$15
Other direct costs
$0
Calculation Breakdown
- 1Gross revenue20 × $110$2,200
- 2Net revenue$2,200 × 0.97$2,134
- 3Total cost(20 × $48) + (20 × $15) + $0$1,260
- 4Profit and margin$2,134 − $1,260; $874 / $2,134 × 100$874; 41.0%
Result Summary
Total cost
$1,260
Accountants Project Profit (Hourly) Calculator
Expected net revenue is $2,134 and estimated project profit is $874, giving a 41.0% margin.
Year-end accounts project with direct costs
40 hours at $150 per hour, a 5% write-off allowance, $65 staff cost per hour, $20 overhead per hour, and $300 of direct costs.
Input Summary
Billable hours
40 hours
Hourly billing rate
$150
Write-off rate
5%
Staff cost per hour
$65
Overhead per hour
$20
Other direct costs
$300
Calculation Breakdown
- 1Gross revenue40 × $150$6,000
- 2Net revenue$6,000 × 0.95$5,700
- 3Total cost(40 × $65) + (40 × $20) + $300$3,700
- 4Profit and margin$5,700 − $3,700; $2,000 / $5,700 × 100$2,000; 35.1%
Result Summary
Total cost
$3,700
Accountants Project Profit (Hourly) Calculator
Expected project profit is $2,000, and expected net revenue is $5,700.
Complex advisory project with higher write-offs
80 hours at $200 per hour, a 12% write-off rate, $95 staff cost per hour, $28 overhead per hour, and $1,200 of direct costs.
Input Summary
Billable hours
80 hours
Hourly billing rate
$200
Write-off rate
12%
Staff cost per hour
$95
Overhead per hour
$28
Other direct costs
$1,200
Calculation Breakdown
- 1Gross revenue80 × $200$16,000
- 2Net revenue$16,000 × 0.88$14,080
- 3Total cost(80 × $95) + (80 × $28) + $1,200$11,040
- 4Profit and margin$14,080 − $11,040; $3,040 / $14,080 × 100$3,040; 21.6%
Result Summary
Total cost
$11,040
Accountants Project Profit (Hourly) Calculator
The project produces an estimated $3,040 profit and a 21.6% margin.
How to Read Your Results
Project profit is the estimated amount remaining after entered labor, overhead, and direct costs are deducted from expected net revenue.
Profit margin uses net revenue after the write-off allowance, not gross billing value.
A negative result means the entered costs exceed expected recovered revenue.
Effective hourly revenue shows what each expected billable hour earns after write-offs.
Compare scenarios using consistent cost definitions and the same expected project scope.
Assumptions & Important Notes
- All currency amounts are expressed in the same currency.
- The entered hourly billing rate is an average across the project.
- Write-offs are estimated as a percentage of gross billing value.
- Staff and overhead costs are applied to all entered billable hours.
- Results exclude tax, financing costs, and costs not entered.
Related Examples
Frequently Asked Questions
Can I use actual figures instead of estimates?
Yes. Enter actual invoiced hours, recovered revenue assumptions, and actual costs to review realized project profitability.
Why can profit increase while margin falls?
A larger project can produce more total profit while a higher share of its revenue is absorbed by costs, resulting in a lower margin.
How do direct costs affect an hourly project?
They are added to project cost in full and reduce profit dollar for dollar in this calculation.
Does the calculator account for unbilled non-chargeable time?
Only if that time is reflected in the staff cost, overhead allocation, or hours and costs entered. The calculator does not add it automatically.
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