Agency Client Profit Calculator
Is this client retainer actually profitable?
Also known as: Agency retainer margin & utilisation calculator
One client, one month
Retainer margin
- Profit a month
- ₹40,800
- Effective hourly rate
- ₹1,923
- Cost of hours over scope
- ₹25,200
- Fee for your target margin
- ₹1,82,000
Scoped rate was ₹2,500.
18 hours.
Below your target margin: reprice, tighten scope, or bill the overrun.
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How it works
How does the Agency Client Profit Calculator work?
Retainer margin = (fee − hours worked × fully loaded cost per hour) ÷ fee. The fee needed for a target margin is cost ÷ (1 − target).
- Fully loaded cost includes salary, benefits, tools and overheads per working hour.
- Effective hourly rate = fee ÷ hours actually worked (including revisions).
- Overrun cost = hours beyond scope × cost per hour.
- Utilisation = hours worked on this client ÷ hours available for it.
Worked example
₹1.5 lakh retainer scoped at 60 hours but taking 78, at ₹1,400 an hour fully loaded: cost ₹1,09,200, margin 27.2%. The effective rate falls from ₹2,500 to ₹1,923 an hour; the 18 extra hours cost ₹25,200. A 40% margin needs a ₹1.82 lakh fee.
Limits
Utilisation here is hours on this client ÷ hours available for it, not the team's total utilisation.
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This free calculation runs locally and is a planning aid, not financial, tax or legal advice. Nothing you type leaves this page unless you choose to save it.