PROJECT MARGIN MODEL

MVP Profit Calculator

Calculate MVP project delivery cost, gross profit, and gross margin from revenue, team hours, blended cost, expenses, and contingency.

  • Uses your inputs in a transparent calculation
  • Instant result with practical next steps
  • No signup required

Planning guidance only. Validate important decisions with customer evidence and your delivery team.

How it works

1

Calculate direct labour

Estimated hours multiplied by blended internal hourly cost produces the labour baseline.

2

Add expenses and reserve

Direct non-labour expenses and percentage contingency create the modelled delivery cost.

3

Measure gross profit

Delivery cost is subtracted from revenue, and the difference is divided by revenue for gross margin.

Frequently asked questions

Is gross profit the same as net profit?

No. Gross profit here excludes operating expenses, tax, financing, and other business costs unless you deliberately include them as direct project expenses.

What rate should I use for labour?

Use a blended internal cost, not necessarily a client billing rate. Include the employment or supplier costs your margin policy treats as delivery cost.

Can margin be negative?

Yes. If modelled delivery cost exceeds revenue, the tool reports a gross loss and a negative margin in the summary.

How We Compare

Feature MVPHub Microsoft ExcelGoogle Sheets
Guided workflow-specific inputs Included Limited Limited
Input-based calculation Included Included Included
Calculation method explained Included Limited Limited
Focused next steps Included Limited Limited

Microsoft Excel and Google Sheets can support detailed profit models and ongoing actuals. MVPHub provides a quick project-level gross-margin calculation and does not replace accounting records.

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