Agency margin becomes clearer when outside delivery cost, internal labor cost, and other delivery overhead are separated.

Net profit: $3,250.00
Gross profit: $3,600.00
Agency margin: 43.33%

Client revenue
$7,500.00
Subcontractor costs
$2,400.00
Internal labor costs
$1,500.00
Other costs
$350.00

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Agency

Agency Margin Calculator

Use this when agency revenue looks healthy but delivery cost and internal effort may be eroding the actual margin.

This calculator helps agencies separate client revenue from subcontractor cost, internal labor, and other project cost before pricing another engagement the same way.

How to use this page

Start with your best current estimate, adjust the inputs until the result feels realistic, and use the related tools below when you want to pressure-test price, profit, or payout from another angle.

Estimate agency margin after subcontractor, labor, and operating delivery costs.

Use the calculator with the examples below to test ideas quickly and come back to the same setup later.

Worked examples

Start from a realistic scenario

Each example opens the same calculator with shareable URL state.

Mixed in-house and outside delivery

An agency engagement with both subcontractor and internal delivery cost.

$3,250.00net profit

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FAQ

Quick answers

Short answers for the questions that usually come up first.

When should I use the agency margin calculator?

This calculator helps agencies separate client revenue from subcontractor cost, internal labor, and other project cost before pricing another engagement the same way.

Is this meant for exact accounting, tax filing, or bookkeeping?

No. It is a planning calculator built around your inputs so you can sanity-check pricing, profit, or cash decisions quickly.