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Agency Profit

Check an agency's billable health, overhead and net profit.

About Agency Profit

Billable hours at the rate produce revenue, and staff plus overhead costs are subtracted to find profit. Agencies live on billable utilization, so comparing revenue to fixed staff overhead exposes unprofitable periods.

Formula

Agency Profit

Revenue = rate x billable hours; profit = revenue - overhead - staff cost

utilization
Share of paid hours actually billed to clients

Worked example

With the default values below, Agency Profit returns Monthly Profit of $17,800. Change any input above and every figure here is recalculated in your browser.

Inputs used

Average billable rate
120
Billable hours (month)minimum 1
1,440
Overhead cost (month)
60,000
Staff cost (month)
95,000

Results

Monthly Revenue
$172,800
Total Cost
$155,000
Monthly Profit
$17,800
Profit Margin
10.3%

Step by step

  1. 1Values used
  2. 2Agency Profit
  3. 3Monthly Profit= 17,800
  4. 4Monthly Revenue= 172,800
  5. 5Total Cost= 155,000
  6. 6Profit Margin= 10.3

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, tax or compounding frequency into account.
  • Figures are rounded for display to 1 decimal place, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • 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.

Frequently Asked Questions

How is Agency Profit calculated?

Revenue = rate x billable hours; profit = revenue - overhead - staff cost Billable hours at the rate produce revenue, and staff plus overhead costs are subtracted to find profit.

Why does Agency Profit matter?

Agencies live on billable utilization, so comparing revenue to fixed staff overhead exposes unprofitable periods.

What values do I need to enter?

This calculator takes 4 inputs: Average billable rate, Billable hours (month), Overhead cost (month), Staff cost (month). The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.

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Agency Profit – Calculate Monthly Profit & Monthly Revenue