Business Calculators
Use this agency margin calculator to compare client or agency revenue against delivery hours, blended labor cost, pass-through costs, and overhead.
Quick answer
Agency Margin Calculator calculates agency margin from monthly revenue, delivery hours and blended cost. The core method is Gross margin = (revenue - labor cost - pass-through costs) / revenue x 100.
Live calculator
$13,400.00 after delivery costs.
$9,600.00 after overhead.
160 hours at $65.00 per hour.
Labor plus pass-through costs.
Formula
Gross margin = (revenue - labor cost - pass-through costs) / revenue x 100Operating margin subtracts overhead after delivery cost. Use loaded labor cost for a cleaner estimate.
How to use
Example
Calculator use
Before relying on it
Benchmarks
The calculator is a decision aid, not a fixed rule. Use the output to compare scenarios and document your assumptions. Benchmark ranges are broad planning heuristics unless this page names a specific source for the range.
A broad heuristic that may leave little room for sales, admin, management, and profit.
Often a more stable range if scope, staffing, and overhead are controlled.
Can indicate efficient delivery, premium pricing, or under-counted labor cost.
Calculator accuracy
The formula, inputs, example, and limitations are shown so the result is checkable, not just a number in a box.
Gross margin = (revenue - labor cost - pass-through costs) / revenue x 100
Monthly revenue, Delivery hours, Blended cost, Pass-through costs, Overhead
Results are estimates for quick planning and should be checked before important financial, legal, tax, health, or business decisions.
May 25, 2026
Toolkit Shelf. Agency Margin Calculator. Retrieved May 25, 2026, from https://toolkitshelf.com/tools/agency-margin-calculator
FAQ
Agency margin is the percentage of revenue left after delivery costs such as labor and pass-through expenses.
It depends on how you report revenue. Keep pass-through costs consistent so the margin comparison is not distorted.
Blended cost is the average loaded hourly cost for the people delivering the work, including payroll burden when possible.
No. Business calculators are scenario tools. Contracts, taxes, payment timing, accounting treatment, refunds, and legal requirements can change decisions.
Save the assumptions, compare a conservative scenario, and review the result with actual books, contracts, or an advisor before making a high-stakes decision.
Different calculators may use different rounding, assumptions, default rates, formulas, or input timing. Compare the visible formula and inputs before relying on the number.