Free tool for managed service providers
MSP Growth Calculator
Estimate what a new managed services client is worth in gross profit — per month and over the time they stay — and what a steady flow of qualified opportunities could add. Everything runs in your browser; nothing you type is saved or sent.
Illustrative estimates
- Monthly gross revenue per closed client
- $2,500
- What the client pays you each month.
- Monthly gross profit per client
- $1,125
- Revenue × gross margin.
- Expected won clients per month
- 1.0
- Opportunities × close rate.
- Estimated monthly additional gross profit
- $1,125
- Won clients × profit per client.
- Gross profit per client over 24 months
- $27,000
- Profit per client × retention months.
- Gross profit from one month's wins over 24 months
- $27,000
- Monthly additional profit × retention months.
These are illustrative estimates based only on the numbers you enter. They are not a prediction or guarantee of leads, introductions, clients, earnings or any other outcome from PipelineForge or anyone else.
How the calculations work
- Monthly gross profit per client = monthly revenue × gross margin %.
- Expected won clients = qualified opportunities × close rate %. Fractions are averages — 0.6 clients means roughly three wins every five months.
- Monthly additional gross profit = expected won clients × monthly gross profit per client.
- Gross profit over retention = monthly gross profit × the number of months a client typically stays.
Revenue is not profit
Revenue is what a client pays. Gross profit is what remains after the direct cost of delivering the service — technician time, RMM and PSA seats, security tooling, backup storage and resold licensing. A $3,000/month client at a 30% margin contributes less than a $2,000/month client at 55%. Gross profit is also not net profit: sales, marketing, management salaries, rent and other overhead still come out of it.
Real-world considerations
Onboarding costs come first. The first one to three months of a new agreement often carry heavy discovery, documentation and remediation work, so early-month margin is frequently lower than steady-state margin.
Close rates depend on fit. A rate measured on well-qualified opportunities will be much higher than one measured on cold inquiries. Use the rate that matches the kind of opportunity you are modelling.
Retention varies. Clients leave because of acquisitions, closures, price pressure or service issues. If you do not track churn yet, try 12, 24 and 36 months to see the range.
Capacity is finite. Adding several clients a month may require hiring before the new profit arrives. Check that your team can deliver at the margin you entered.
Acquisition costs are not included. Subtract what you spend on marketing, sales time or lead sources to understand return on that spend.
Projects and one-time fees are excluded. This calculator models recurring managed services only; project work can add profit but is less predictable.
Want to go deeper? Read the MSP pricing guide or browse all MSP growth guides.