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Client Profitability Calculator

Work out client profitability instantly with clear inputs, formula shown and shareable results.

About Client Profitability Calculator

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.

Formula

Client profit

Profit = revenue - hours × cost per hour - revenue × overhead allocation

Worked example

With the default values below, Client Profitability Calculator returns Net Profit From The Client of $2,040,000.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Annual Revenue From The Clientminimum 0
6,000,000
Delivery Hours In The Yearaccepts 1–100,000
2,400
Cost Per Delivery Hourminimum 0
1,200
Overhead Allocatedaccepts 0–60 %
18 %

Results

Net Profit From The Client
$2,040,000.00
Net Margin On The Client
34.000%
Realised Revenue Per Hour
$2,500.00
Total Cost To Serve
$3,960,000.00

Step by step

  1. 1Values used
  2. 2Client profit
  3. 3Net Profit From The Client= 2,040,000.00
  4. 4Net Margin On The Client= 34.000
  5. 5Realised Revenue Per Hour= 2,500.00
  6. 6Total Cost To Serve= 3,960,000.00

Assumptions and limits

  • The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation or tax into account.
  • Figures are rounded for display to 3 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • 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.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

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.

Frequently Asked Questions

Why do big clients sometimes lose money?

Because volume discounts plus heavy servicing demands can push realised hourly revenue below cost.

Should overhead be allocated on revenue?

Revenue is simple but crude. Allocating on hours or headcount is fairer where servicing intensity varies.

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