One hundred percent utilization
Sales, internal work and vacations eat a third of the time.
Financial model template
Software agency financial model
An agency sells hours, and unsold hours are paid for anyway. The template bills hours at your rate with realistic utilization, adds support retainers, pays the team and waits for clients to pay invoices.
The model answers
- What utilization keeps the team profitable
- Which hourly rate covers salaries and overhead
- How much cash payment delays require
What is inside the template
Each line is a block with plain fields. Change the numbers, delete blocks or add new ones.
- Billable hours × hourly rate with utilization
- Support retainers as monthly recurring income
- Developers, designers and a project manager
- Office, software and hardware
- Client payment delay
- Taxes on revenue or profit
Numbers to watch
- Utilization
- The share of paid hours in working time. Sixty to seventy-five percent is a healthy range.
- Effective hourly rate
- Revenue divided by all hours worked, including non-billable.
- Retainer share
- Recurring support smooths cash between projects.
- Cash buffer
- Clients paying in 30–45 days push the cash gap forward.
Common mistakes in this kind of model
Hiring before the contract
A new developer costs money from day one, revenue arrives later.
Invoices paid immediately
Model payment terms to see when salaries outrun incoming payments.
AI assistant
Check the template against your market
Tell the assistant your city and format. It looks up prices, rent and salaries online, compares them with the template and proposes changes as cards with the effect on profit and cash. You decide what to apply.
Questions
How do I model hourly billing?
Use the hourly work block: rate, hours per month and utilization. Each specialist can be a separate block.
Can I plan hires?
Yes. Set the start month for each staff block and see the effect on cash.
Related reading
Cash flow gap: how to spot it before it happens
What a cash flow gap is, the typical causes (stock, payment terms, seasonality, loans), how to find it in a monthly forecast and six ways to close it.
Unit economics in plain words
Unit economics explained with examples: contribution margin per order, customer acquisition cost (CAC), lifetime value (LTV), LTV/CAC and CAC payback for e-commerce and SaaS.
Similar templates
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