Outcome

Profit per person

Revenue per head says how busy people are, not what they earn the firm. Work out one person’s profit after their own cost and their share of overhead.

Work it out with your numbers

The figures below are a worked example. Change any of them: nothing you type is sent or stored.

What it comes to

Profit per month
+2 900 €
Revenue per month
9 600 €
Margin
+30.2%

How the figure is calculated

In words
Multiply the billable hours by the rate to get revenue, then take away what the person costs you and their share of overhead such as rent, tools and management.
In symbols
  • Profit per month = B × R
  • Revenue per month = B × R − E − O
  • Margin = (B × R − E − O) ÷ (B × R)
With your numbers
  • 120 h × 80 € = 9 600 €
  • 9 600 € − 5 500 € − 1 200 € = 2 900 €

Assumptions

  • Overhead per person is your monthly overhead divided by the number of people. A loss shows as a negative profit, because it is one.
  • Only hours that are invoiced count as billable: hours written off at month end earn nothing.

How Flowtly measures this

  1. 1Each person’s billing rate prices their time, so logged hours carry revenue as they are entered.
  2. 2With the right permissions, the Money view in Actuals adds revenue, cost and margin per person, drilled down by project.Read the guide
  3. 3Budgets per project, client or team track real spend against plan, so profit and loss are there without a spreadsheet.Read the guide

See budgets and P&L

The team costs over time tab of a project: a chart of team member cost and a table giving each team member a cost for each month, in euro.
Open a project’s financials: everyone who logged time appears with what their hours cost, month by month.

Measure it on your own data

Start a 14-day trial and load a month of your own hours, or book a demo and we will walk through it with you.

Start free trialBook a demo

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