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Client Profitability illustration

Marketing · Income

Client Profitability

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Use client profitability to see what an account really earns after the labor and overhead it consumes, so you know which clients are worth keeping.

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Interactive workbench

Retainer account

Revenue - Labor Cost - Overhead

$12,000 of revenue less $6,000 labor and $2,000 overhead leaves $4,000 of profit.

Check your inputs before you rely on the result — calculations are informational only and depend entirely on the numbers you enter. See our Terms.

Variables and units

  • Revenue

    Revenue billed to the client.

    currency

  • Labor Cost

    Staff time spent on the client.

    currency

  • Overhead

    Allocated overhead for the client.

    currency

Common mistakes

  • Ignoring unbilled hours.
  • Leaving overhead unallocated.

Step-by-step example

Retainer account

$12,000 of revenue less $6,000 labor and $2,000 overhead leaves $4,000 of profit.