Check an agency's billable health, overhead and net 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.
Agency Profit
Revenue = rate x billable hours; profit = revenue - overhead - staff cost
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.
Agencies live on billable utilization, so comparing revenue to fixed staff overhead exposes unprofitable periods.
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.