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FormulaMargin per hour = charge rate − cost price per hour, from time registration, rates and payroll

The cost price per hour includes gross wages, employer contributions, accruals and travel expenses. Worked example: say you charge € 32 per hour and that hour costs you € 25. Then the margin per hour is € 7.

It is the most important key metric for organisations that earn by the hour, such as temporary staffing and secondment.

Why it matters

Revenue says little if you do not know what is left per hour. Margin per hour shows which clients, roles and contracts really pay off, and where a rate conversation is needed. In the model it is the core of the margin loop: cost price per hour, rate, margin per hour, rate conversation, contract realisation.

Where it goes wrong

Teams often calculate with the wage instead of the full cost price, so allowances, accruals and travel expenses stay out of sight. Or the rate comes from the contract while the invoice says something else. And a CLA (collective labour agreement) wage increase is not always passed on in full in the rate.

How Dashly calculates it

Dashly connects time registration, rates and payroll per worked hour and calculates the margin per week, by default on the work date. You see it per client, role, region and branch, with an alert when the margin drops below your target.

Related

Calculator
Margin per hour
Margin per hour€8
Margin as a share of the rate20%
Margin over the period€1,280

Indirect costs and recruitment costs are not included yet.

Example values; change them to your own numbers.