What is margin?
You may notice margin represented in various places across your Float account. Generally, margin (short for profit margin percentage) is a measure of how much your organization earns after covering project costs. Many of the customers we work with use margin to determine the profitability of a project, enabling them to make informed decisions and gain an accurate view of a project’s financial direction.
Profit vs. profit margin, are they the same thing?
Profit and margin are closely related, but represent different financial measures.
Profit is the amount earned after subtracting costs from revenue (a static number). It’s best for understanding the earnings on a single project.
Margin is the percentage of revenue that remains as profit (a relative number). It’s most useful for comparing the relative profitability of projects of different sizes.
Example 1:
A creative agency delivers a brand refresh for a local client.
Revenue: $100,000
Costs: $55,000
Profit = $45,000
Margin = ($45,000 / $100,000) x 100 = 45% margin
Example 2:
The same creative agency delivers a year-long digital transformation project for an enterprise client.
Revenue: $1,000,000
Costs: $600,000
Profit = $400,000
Margin = ($400,000 / $1,000,000) x 100 = 40% margin
As shown in these examples, margin enables us to compare the performance of two projects relatively, even if the second project is much larger than the first.
Why tracking margin matters
Tracking margin in Float helps you:
Measure project profitability at a glance: Instantly see which projects yield the highest returns, and which may need a closer look.
Guide smarter pricing and budgeting: Understand how your team’s cost rates and bill rates impact a project’s profitability, so you can make adjustments where needed.
Identify early signs of project decline: If the expected margin drops below the baseline estimate, it may indicate over-servicing, underpricing, or scope creep.
Inform strategic insights: Utilize margin insights to make smarter decisions on rates and the types of projects that contribute most to your bottom line.
Where to find project margin in Float
You can track margin in a few key places in Float:
Single Project Report
View a project’s margin alongside project fees and costs to understand overall profitability for a single project. Learn more about margin in the single project report here.
Project view
The project overview bar displays your project’s margins alongside fees and costs, providing a snapshot of real-time profitability during project planning. Learn more about margin in the Project view here.
Projects page
You’ll find a margin column on the Projects page, providing a high-level overview of margin for all projects (Visible to Account Owners, Admins, Billing users, and Managers with profitability visibility enabled). Learn more about margin on the Projects page here.
Estimates
When creating an estimate in Float, you’ll see a margin based on the estimated fees and costs. Use this to measure how profitability evolves, comparing actual margin with the margin from your original baseline estimate. Learn more about margin in baseline estimates here.
Additional notes
Float’s margin tracking is designed for project-level profitability insights, helping you make smarter scheduling, pricing, and resourcing decisions. It’s not designed to replace your financial & accounting tools.