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Project Costing Template (Excel) — Margin per Project, Free

One column per project: the fee, the hours quoted, the hours booked and the internal cost behind them. It ends on the number every agency argues about — the hourly rate you realised, as opposed to the one on the rate card.

The download

Free download

Download: Project costing & margin

  • Quoted hours against booked hours, per project
  • Internal cost per hour, not the sales rate
  • Freelancers and licences as their own cost line
  • Margin in euros, in percent, and as a realised hourly rate

No email, no sign-up. Formulas already wired up.

The sheet itself

  • Quoted hours against booked hours, per project
  • Internal cost per hour, not the sales rate
  • Freelancers and licences as their own cost line
  • Margin in euros, in percent, and as a realised hourly rate
foreqast-project-costing-and-margin.xlsx
HomeInsertDrawPage LayoutFormulasDataReviewView
Calibri11
B15=B5-B13
ABCDEFGHIJKLMN
1Project costing & margin
2Fill in the blue cells — every other cell is a formula and works itself out. foreqast.app
3Project AProject BProject CProject DProject E
4What you sold
5Project fee, net (€)€24,000€8,500€46,000€12,500€31,000
6Hours quoted1807034095240
7Implied hourly rate (€)€133.33€121.43€135.29€131.58€129.17
8What it actually cost
9Hours booked21468402131236
10Internal cost per hour (€)€62.00€62.00€62.00€62.00€62.00
11Labour cost (€)€13,268€4,216€24,924€8,122€14,632
12Freelancers & licences (€)€3,200€0€9,400€1,800€2,600
13Total project cost (€)€16,468€4,216€34,324€9,922€17,232
14The margin
15Project margin (€)€7,532€4,284€11,676€2,578€13,768
16Project margin %31.4 %50.4 %25.4 %20.6 %44.4 %
17Realised hourly rate (€)€112.15€125.00€114.43€95.42€131.36
18Hours over quote34-26236-4
Sheet1

The blue cells are yours to fill in. Every other cell is a formula and works itself out.

How to use it

  1. 1

    Use your internal cost rate, not your sales rate

    Fully loaded salary, employer costs, holiday and non-billable time, divided by the hours actually available. For most agencies that is between €55 and €80.

  2. 2

    Book every hour, including the ones you will not bill

    Revisions, calls, the extra concept round. Hours you do not book are not hours you did not pay for — they just disappear from the margin calculation.

  3. 3

    Compare the realised rate against your target

    Fee ÷ hours booked is the rate you actually got. Held against your rate card, it is the clearest measure of how well you scope.

  4. 4

    Read the overrun row across all projects

    One project over budget is a project. Every project over budget by roughly a fifth is a pricing problem, and it is fixed in the quote, not in the delivery.

A worked example

A project that made money and lost the rate

Project C — fee
€46,000
Quoted hourly rate
€135.29
Hours booked vs quoted
402 vs 340
Project margin
€11,676
Realised hourly rate
€114.43

The project is profitable — €11,676, a 25% margin. But 62 hours of overrun took €21 an hour off the rate, which is €8,400 on this project alone. Repeat that across a year of projects and it is a full-time salary, invisible because every individual project “made money”.

The mistakes that break it

  • Costing hours at the sales rate

    Using €135 as the cost of an hour makes every project look like a loss. The cost of an hour is what you pay for it, not what you sell it for.

  • Leaving freelancers out of the project

    A €9,400 freelancer invoice booked to “external costs” at company level is a project margin overstated by twenty points.

  • Only calculating it when the project is done

    At 60% of the hours with 30% of the work delivered, there is still something to do about it. After the final invoice there is not.

Where the template stops

It does not know your capacity

A 30% margin on every project still loses money if half the team is idle. Project margin and utilisation are two different questions.

Utilisation calculator

The hours have to come out of the time tracker by hand

Every project, every week, exported and pasted. It is the reason project costing sheets are usually filled in once, at the end.

It says nothing about when the money arrives

A profitable project invoiced on completion with 30 days' terms is four months of payroll you fund yourself.

13-week cash-flow plan

What comes after the spreadsheet

Project profitabilityBooked hours against fixed payroll, project by project — without re-exporting the time tracker every Monday.