Work out client profitability instantly with clear inputs, formula shown and shareable results.
Client profitability needs both delivery cost and a fair share of overhead. Realised revenue per hour is the diagnostic figure — a large client billing at a low realised rate can be less profitable than a small one.
Client profit
Profit = revenue - hours × cost per hour - revenue × overhead allocation
Figures are estimates based on the inputs given. Marketing performance, platform fees and conversion behaviour vary by audience, channel and season. Use this as a planning guide, not a forecast.
Because volume discounts plus heavy servicing demands can push realised hourly revenue below cost.
Revenue is simple but crude. Allocating on hours or headcount is fairer where servicing intensity varies.