This calculator gives firms a disciplined starting price for recurring bookkeeping. It is not a market-rate lookup. Instead, it works backward from expected delivery cost and target margin, then applies complexity and risk adjustments.
Calculator inputs
| Input | What the user enters | Default guidance |
|---|---|---|
| Monthly staff hours | Expected preparer hours | Use recent similar clients or a pilot month |
| Blended staff cost/hour | Salary + payroll burden + benefits / productive hours | Use internal cost, not billing rate |
| Manager/partner hours | Expected review/advisory time | Include recurring client meetings |
| Reviewer cost/hour | Fully loaded internal cost | Use realistic cost |
| Other direct monthly cost | Apps, outsourced work, transaction fees | Only engagement-specific costs |
| Target gross margin | Desired margin percentage | Firm-specific |
| Complexity adjustment | 0–30% uplift | Entities, inventory, messy books, special reporting |
| Risk/urgency adjustment | 0–25% uplift | Compressed deadlines, unreliable inputs, high-touch client |
Formula
Direct delivery cost = (staff hours × staff cost/hour) + (review hours × review cost/hour) + other direct cost. Base price = direct delivery cost ÷ (1 − target gross margin). Recommended price = base price × (1 + complexity adjustment) × (1 + risk adjustment).
Worked example
Assume 8 staff hours at $45 cost/hour, 2 manager hours at $90 cost/hour, and $60 of direct software cost. Direct delivery cost is $600. At a 60% target gross margin, the base monthly price is $1,500. A 10% complexity uplift produces $1,650; adding a 5% risk adjustment produces approximately $1,733. Round and package the final client price according to your commercial strategy.
Recommended on-page calculator behavior
- Display the calculated price live as inputs change.
- Show direct cost, implied gross profit dollars and implied gross margin.
- Allow users to add a minimum monthly fee floor.
- Include an optional annual fee output.
- Add a ‘scope assumptions’ text box users can copy with the result.
- CTA after result: ‘Want to compare quoted price with actual realization? See PracticeERP profitability intelligence.’
For context on pricing models, link this tool to the Bookkeeping Services Pricing Guide and Accounting Services Pricing Guide. Once a client is live, use operational data to compare estimated effort with actual delivery. PracticeERP’s AI profitability tools are built for that feedback loop.
Ready to take the next step? Use the calculator to set the starting price—then use real project, time, WIP and margin data to validate it. Explore PracticeERP profitability intelligence.
