50.00% is the example result. Margin measures the share of selling revenue left after the costs represented here. A 20% margin is not the same as adding 20% to cost.
Compare project revenue with direct delivery cost to measure the modeled margin. Add any missing overhead separately before treating it as net profit.
Reading capacity and cost without hiding the workload
Margin measures the share of selling revenue left after the costs represented here. A 20% margin is not the same as adding 20% to cost. A staffing plan needs available hours and the portion of those hours that can serve the intended work. Paid time, productive time and billable time are separate definitions. Recruiting, training and supervision can change the cost of a role.
What the model includes
Margin (%) = (revenue or price − modeled cost) ÷ revenue or price × 100. When EBITDA is supplied, use EBITDA ÷ revenue × 100. Use one team and one reporting period. Headcount measures should distinguish people from full-time equivalents; hour-based models should state the expected schedule. A temporary absence and a permanent vacancy have different operating consequences. Review the result with the work queue and service commitment. A high utilisation percentage can signal limited room for urgent work, rather than a reason to add more demand immediately.
Example with the supplied inputs
Project revenue: 5000; Direct delivery cost: 2500. Result: 50.00%. The values are illustrative.
Compare one changed input
Project revenue changes from 5000 to 5500. The result becomes 54.55%. All other inputs remain fixed.
Calculation rule
Margin (%) = (revenue or price − modeled cost) ÷ revenue or price × 100. When EBITDA is supplied, use EBITDA ÷ revenue × 100.
Inputs and output
| Input | Example value | Entry convention |
|---|---|---|
| Project revenue | 5000 | Use project revenue on the currency and period basis shown by the formula. Keep gross amounts, net amounts and unit amounts distinct; the page does not fetch a price or exchange rate. |
| Direct delivery cost | 2500 | Use direct delivery cost on the currency and period basis shown by the formula. Keep gross amounts, net amounts and unit amounts distinct; the page does not fetch a price or exchange rate. |
Output: 50.00% is the example result. Margin measures the share of selling revenue left after the costs represented here. A 20% margin is not the same as adding 20% to cost. Use the formula to distinguish a cash amount, count, percentage or ratio.
How to use the page
Collect the inputs
Gather Project revenue, Direct delivery cost. Use one period and the units shown in the form.
Run the calculation
Enter the values and select the action. The calculation rule above explains how the inputs produce the result.
Compare a scenario
Change Project revenue on its own, keeping the other inputs fixed. Read both results before changing another assumption.
Worked example
With the example inputs listed above, the result is 50.00%.
Change Project revenue from 5000 to 5500 while keeping every other value fixed. The result becomes 54.55%. This comparison isolates that input; it does not forecast how other variables will respond.
Check the stated formula, units and limits before using the result in a decision.
Keep the displayed formula, input units and model scope with the result. Corrections or questions can be sent through the request section on this page.
Content updated: October 11, 2026