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Cost & Margin Engine

Hourly Cost & Project Margin

Factor employee compensation, overhead ratios, and FX risk to protect bottom-line margins.

Cost & Margin Engine

Many agencies quote projects based on raw salaries alone, ignoring taxes, software overhead, non-billable bench time, and currency volatility.

True Hourly Cost Formula

  • Loaded Labor Cost: Base Salary + Payroll Taxes + Benefits (Equipment, Healthcare)
  • Overhead Allocation: Office, Legal, SaaS Tools divided across billable headcount.
  • Billable Capacity: Standardized to 1,600 annual billable hours.

$$\text{True Hourly Cost} = \frac{\text{Gross Loaded Salary} + \text{Allocated Overhead}}{\text{Annual Billable Hours}}$$

Margin Threshold Guards

When creating a proposal, if your projected margin dips below your configured target (e.g. 35%), the system alerts you and enforces manager approval rules.

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