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Agency Profit Calculator: Find Your Hidden Billable Hours

Agencies and professional services teams lose 6–30% of billable hours depending on tracking discipline. This calculator shows how much revenue your team is missing from context switching, admin work, and forgotten time entries.

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How margin leakage works

Most agencies calculate profit by subtracting costs from revenue. What they miss is the cost of untracked work — context switching, admin tasks, and sessions under 15 minutes that never make it onto a timesheet. This is margin leakage: the gap between what your team actually works and what gets billed.

Utilization Rate = Billable Hours ÷ Total Available Hours × 100. The industry benchmark is 70–80%. If your team tracks time manually, reported utilization is likely 10–20 points below reality. This calculator estimates the revenue hiding in that gap.

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