Project Cost & Profit Calculator

Analyze project profitability by comparing quoted revenue against labor, tools, direct expenses, and taxes.

About this tool

Avoid underpricing projects by calculating exact labor costs, direct expenses, and true profit margins before signing contracts.

How to use this tool

  1. Enter your proposed client price (quoted revenue).
  2. Add estimated hours and hourly labor cost.
  3. Include tool subscriptions and direct project expenses.
  4. Review the gross profit, profit margin %, and required cost markup.

How it works

Deducts direct labor hours, software licenses, and contractor expenses from quoted revenue to calculate net profit and margins.

When to use this tool

  • Validating fixed-price software project profitability
  • Ensuring freelance projects meet minimum margin thresholds

Frequently asked questions

What is the difference between margin and markup?

Margin is profit divided by revenue. Markup is profit divided by cost. A 50% markup equals a 33.3% profit margin.

Limitations

Assumes direct expenses provided are exhaustive.

Privacy

Financial estimates remain confidential in your browser.