Agency Profitability Calculator | Rinkta [Rinkta](https://rinkta.com/) Products Agencies Resources [Customers](https://rinkta.com/case-studies) [Pricing](https://rinkta.com/pricing) [Log in](https://app.rinkta.com/session/new) [Sign up for free](https://app.rinkta.com/registration/new) Calculator # Agency Profitability Calculator Estimate your agency's monthly profit, margin, and break-even utilization with five simple inputs. Built for software, creative, interior, and legal agencies. Free, no signup. Billable team size How many client-facing people are delivering billable work? 15 Average billable hourly rate Use your typical blended rate across active client work. $120 Average utilization Percent of team time that is actually billable. 70.0% Monthly cost per billable employee Salary, taxes, benefits, software, and equipment per person. $8,000 Monthly agency overhead Rent, admin, leadership, marketing, and non-delivery costs. $25,000 Estimated monthly revenue$201,600 Estimated monthly profit$56,600 Estimated profit margin28.1% Break-even utilization50.3% --- Assumptions: 160 working hours/month per billable employee. Your utilization is within the typical 65-75% range and above your break-even point. --- #### Let Rinkta find the profit you're leaving behind Most agencies lose 5-10% of billable work to forgotten hours. Rinkta captures it automatically. [Start your free trial now](https://rinkta.com/registrations/new) ## Frequently asked questions
What's a healthy profit margin for an agency? ◀ Most agencies aim for 15–20% net margin. Top-quartile shops hit 25–35%. If you're under 10%, the usual culprits are low billable utilization, underpriced retainers, or untracked scope creep — not your hourly rate.
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How does utilization affect profitability? ◀ Profitability is utilization × rate × capacity, minus costs. A 10-percentage-point lift in billable utilization usually moves margin more than a 10% rate increase — because you're charging for hours your team is already working.
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What is break-even utilization? ◀ The minimum percentage of your team's available hours you need to bill to cover delivery costs and overhead. Anything above break-even is profit; anything below means you're subsidizing client work with founder savings.
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What numbers do I need to plug in? ◀ Five inputs: billable team size, average billable hourly rate, average utilization, monthly cost per billable employee (loaded — salary plus benefits), and monthly agency overhead (rent, software, non-billable salaries).
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How accurate is this estimate? ◀ It's a back-of-envelope model — directionally right, not a substitute for actuals from your books. Use it to spot which lever (rate, utilization, cost) moves margin most for your shop. If you want real numbers from real work, Rinkta captures completed tasks from Asana / GitHub / Linear / Slack and shows actual margin per client and project.
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