How this tool works
This calculator subtracts direct costs, payment fees, and an operating buffer from project revenue, then estimates gross profit, margin percentage, break-even price, target price, and optional tax reserve.
Free project profit margin calculator for freelancers and small businesses to estimate gross profit, margin percentage, break-even price, target price, fees, buffer, and tax reserve.
This calculator subtracts direct costs, payment fees, and an operating buffer from project revenue, then estimates gross profit, margin percentage, break-even price, target price, and optional tax reserve.
paymentFees = projectRevenue * paymentFeePercentage / 100; operatingBuffer = projectRevenue * operatingBufferPercentage / 100; totalProjectCosts = directCosts + paymentFees + operatingBuffer; grossProfit = projectRevenue - totalProjectCosts; margin = grossProfit / projectRevenue * 100; breakEvenPrice = directCosts / (1 - paymentFeePercentage / 100 - operatingBufferPercentage / 100); targetPrice = directCosts / (1 - paymentFeePercentage / 100 - operatingBufferPercentage / 100 - targetMarginPercentage / 100)
Use this after estimating a project price to check whether the fee still leaves enough margin after production costs, fees, operating buffer, and tax reserve.
Project profit margin is the share of project revenue left after direct costs, fees, and operating buffer are removed.
Break-even shows the minimum price needed to cover the listed direct costs and percentage-based costs before profit.
The target price estimates what you would need to charge to reach your desired margin after costs and percentage-based fees.
This tool shows tax reserve separately as a planning number. Margin is calculated before tax reserve so it stays comparable across projects.
No. It is a planning calculator. Confirm taxes, bookkeeping, and cost treatment with a qualified professional.