Hourly Cost & Project Margin

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.

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Kopyala
True Hourly Cost = (Gross Loaded Salary + Allocated Overhead) / 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.