Runn provides a forecast of key financial metrics for each of your projects, including: 

  • Project Budget ($)
  • Project Revenue ($)
  • Project People Costs ($)
  • Gross Project Profits ($)
  • Margin (%)

The Insights forecast is for the entire project.

Note that the data shown here are based on your inputs. We assume that you will bill all hours you have assigned/logged on this project. E.g. if you schedule a person for 10h per day but that person's capacity is  8h per day, we assume you will bill the 10h and use that number to calculate your forecasts.

Project Revenue

Project Revenue gives you an indication of the financial value the project will be bringing in. 

It's the sum of the assigned/logged hours for each team member and placeholder on the project, multiplied by the respective charge out rates of their roles. 

Project People Costs

Project People Costs give you an indication of the sum of all labor expenses (excluding placeholders) you are expected to occur on the project.

Gross Project Profits

Gross Project Profits gives you an indication of the money you will earn from the project after subtracting any people/placeholder costs from your project billings. 

Margin

The margin shows the percentage of revenue that exceeds your project people costs.

Here's an example of how we calculate these metrics:

In the example below, we have 3 people scheduled on a project to work 80h each over the next four 4 weeks. 

  • Their cost is $60 each (See employment contracts for how to set and manage a person's cost rate)
  • Their project charge out rate is $150 (See rate cards to set and manage charge out rates)

Note that for simplicity's sake, this example uses the same cost and role charge-out rate for each person on the project. In reality, these figures will likely be different.

Project Budget
= (budgeted hours * charge out rate) * 3 people
= (80h * $150) * 3
= $36,000

Project Revenue

= (assigned hours for period * charge out rate) * 3 people
= (80h * $150) * 3
= $36,000

Project People Costs 

 = (assigned hours for period * cost rate) * 3 people
= (80h * $60) * 3
= $14,400

Gross Project Profits 

= Project Revenue - Project People Costs
= $36,000 - $14,400
= $21,600

Margin 

= (Gross Project Profit / Project Revenue) * 100
= ($21,6000 / $36,000) * 100
= 60%


Still have questions? We're happy to help! 

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