Revenue alone hides which clients are worth keeping. Profit per client subtracts the cost to serve from their revenue — SUMIF totals each side by client for a true ranking.
The example
$18k revenue, $11k cost.
| A | B | |
|---|---|---|
| 1 | Item | Value |
| 2 | Revenue | 18000 |
| 3 | Cost | 11000 → $7,000 |
The formula
The formula:
How it works
How it works:
SUMIF(client, name, revenue)totals what a client paid; the second SUMIF totals what they cost (hours × rate, plus expenses).- Subtract for profit per client — the number that reveals hidden losers.
- Divide by revenue for a margin:
profit / revenue. - Rank clients by profit to focus retention, raise prices, or fire the unprofitable ones.
The biggest client isn’t always the best. A high-revenue client who demands endless revisions can earn less profit than a smaller, low-maintenance one. Computing profit (not revenue) per client — and the margin — routinely reorders the “top clients” list and changes who you cultivate.
Try it: interactive demo
Client revenue and cost to serve.
Variations
Profit margin
As a percent:
Cost to serve
Hours + expenses:
Rank clients
Best first:
Pitfalls & errors
Count all costs. Include unbilled hours and overhead, not just direct expenses.
Revenue ≠ profit. The biggest client can be a low-margin one.
Consistent names. SUMIF needs client names spelled identically.
Practice workbook
Frequently asked questions
How do I calculate profit per client in Excel?
Why is profit per client better than revenue?
How do I rank clients by profit?
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