Cost rates & margin

Add what time costs you, and ProjectPacer turns revenue into profit and margin.

A bill rate tells you revenue. A cost rate tells you what that hour cost you — and together they give you profit and margin. Cost rates are set per person (their loaded cost per hour).

Cost is gated tighter than billing

Profit, margin, and expense cost are gated behind See costs & margin, which owners and admins have by default and a manager doesn't. An admin can grant it to another role on Roles & permissions — a teammate without it sees revenue but no cost or margin.

The cost rates themselves are stricter still: the rate card only ever shows them to owners and admins, whatever the permission says. A manager granted "See costs & margin" sees the resulting margin, not what each person is paid.

Why margin sometimes reads "partial"

ProjectPacer only knows cost for hours that have a cost rate. If any hours in the view lack one, the numbers can't be trusted, so margin shows "partial" or a dash rather than a confident figure.

  • On a fixed-fee engagement, the baseline ("already used at start") has no tracked cost, so margin stays partial while the baseline is in play.
  • A person with no cost rate makes every hour they logged uncosted. Coverage flags exactly who.

Fill the gaps and margin resolves to a real number.

How expenses fold in

Billable expenses count on both sides: their cost always lowers profit, and a "bill on top" expense adds revenue (its markup is your margin). A "draw from budget" expense adds cost but no extra revenue — it's already covered by the fee.

Reading the numbers

  • Profit = (labor + expense) revenue − (labor + expense) cost — shown only when cost is complete.
  • Margin = profit ÷ total revenue, colour-coded so a thin engagement stands out at a glance.
  • Effective $/hr is revenue-based and always shows, even without cost — see Rates & profitability.
The profitability report

Revenue, cost, and margin across all your work.

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