How to Calculate Project Profitability for Agencies: A Practical Guide
Project profitability is the profit a project generates after subtracting all costs required to deliver it: labor, contractors, expenses, and overhead. The core formula is project profit equals project revenue minus total project costs. This guide walks agencies through a repeatable method to calculate project margins, identify where costs accumulate, and track profitability in time to act on it, whether you use a spreadsheet, a finance system, or time tracking software.