Labor Cost vs Billing Margin Calculator
Compare billing rates against labor costs to estimate margin by role. See exactly where your profit comes from and which roles deliver the best margins.
Team Roles & Rates
Enter each role's billing rate, loaded cost rate, and projected hours
| # | Role / Title | Bill Rate ($/hr) | Cost Rate ($/hr) | Margin/Hr | Margin % | Hours | Total Revenue | Total Cost | Total Margin | |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | $65.00 | 43.3% | $0.00 | $0.00 | $0.00 | |||||
| 2 | $55.00 | 45.8% | $0.00 | $0.00 | $0.00 | |||||
| 3 | $55.00 | 42.3% | $0.00 | $0.00 | $0.00 | |||||
| 4 | $35.00 | 46.7% | $0.00 | $0.00 | $0.00 | |||||
| TOTALS | 0.0% | 0 | $0.00 | $0.00 | $0.00 | |||||
Margin Benchmarks
40%+ — Strong
Healthy margin typical of specialized or senior roles. Covers overhead and contributes meaningful profit.
20–39% — Average
Common for mid-level staff. Covers direct overhead but leaves thin profit after G&A. Look for ways to improve utilization.
< 20% — Low
Margin may not cover overhead and insurance burden. Consider raising billing rates or reducing cost through efficiency.
Do this automatically in QuickBooks
Pull actual labor hours and costs from QuickBooks to calculate real-time margins across your projects.