IT project margin calculator
Estimate margin after entered labour and external costs from a client price before VAT.
Try a worked example
Try a worked example
Estimate margin after entered labour and external costs from a client price before VAT.
Check the units and options, then use the tool’s calculation button. The example is fictitious; replace its values for your own calculation.
Illustration only. Supply the applicable rates and assumptions yourself; this is not financial, tax or legal advice.
Example input
- Client price (before VAT)
- 5000
- Labour hours
- 30
- Internal cost per hour
- 45
- External costs
- 400
- Currency
- EUR €
Expected output
Labour cost: €1,350.00 Total entered costs: €1,750.00 Margin after entered costs: €3,250.00 Margin rate on client price: 65 %
Subtracts labour hours × internal cost per hour and the entered external costs from the client price before VAT. Margin rate is based on that price.
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Method and limits
The result depends on the values entered and the method shown. Check the assumptions, rates, or rules that apply to your situation before using it. Illustrative result only. Verify the rules and assumptions that apply to your work.
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Quick answer
Subtracts labour hours × internal cost per hour and the entered external costs from the client price before VAT. Margin rate is based on that price.
The page code is downloaded when you open it; values are handled in your browser.
Limits of the result
The result depends on the values entered and the method shown. Check the assumptions, rates, or rules that apply to your situation before using it. Illustrative result only. Verify the rules and assumptions that apply to your work.
Frequently asked questions
What does the calculation include?
Margin after entered costs = client price before VAT − (labour hours × internal cost per hour) − external costs entered. With the prefilled example, 30 × 45 = 1,350 labour; + 400 external costs = 1,750 entered costs; 5,000 − 1,750 = 3,250, or 65% of the client price before VAT. The tool subtracts external costs as entered and does not calculate VAT or input tax. It excludes overhead, taxes, omitted work, and scope changes, so it is not full accounting profit.
Which values should I enter?
Estimate margin after entered labour and external costs from a client price before VAT. Use consistent amounts, units, and time periods.
Is the result definitive?
No. Check the assumptions and rules that apply to your situation; this is an illustrative calculation, not professional advice.
Sources and references
These references describe the cited context and rules; some apply only in the jurisdiction named in their title. They do not validate this illustrative calculation.