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

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

The forecast is for the entire project.

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

Any placeholders you have set-up on this project are included in these metrics. Placeholder costs are derived from the default hourly role cost

Project Billings

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

It's the sum of the assigned 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 (including placeholders) you are expected to occur on the project.

Placeholder costs are derived from the default hourly role cost.

Note that any person not having an hourly cost set-up in their contract will automatically fall back to their role's hourly cost. 

Gross Project Profits

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

Margin

Margin shows the percentage of billings that exceed your project people costs.

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

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

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

Note that for simplicity 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 Billings

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

Margin 

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


Still have questions? We're happy to help! 

Did this answer your question?