Project profitability is calculated using project budget amount and project cost.
How do you Calculate Project Budget?
The project budget is either defined as fixed fee or calculated based on billing method (person hourly rate, project hourly rate or category hourly rate).
Fixed fee budgets can be entered on the project settings page. If your project does not have a fixed budget, mark the budget in Project Settings as “No Budget”, and it will be calculated based on your chosen billing method (billable rate x number of hours).
How do you Calculate Project Cost?
Project cost consists of two things: timesheets, and expenses.
Note: When calculating Timesheet Costs, we prioritise the Timesheet Category Cost Rate over the Person Cost Rate. If you would prefer to use use the Person Cost Rate, then do not enter a cost rate for Timesheet Categories on that project.
Viewing Project Profitability
To view project profitability, you can run the Project Profitability Report. Choose the customer and project. The resulting report will provide you with the project profit, as well as details of each timesheet and expense item.