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How Calculations Work

This page explains how Spicom computes margins, contract profitability, and cost allocation.
The goal is full transparency so you always understand how every number is produced.

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Margin Formula

Spicom uses a real FP&A margin calculation, not a simplified “revenue – salary”. The real margin formula: 
real_margin = revenue - workforce_cost - global_cost_allocation
And the margin percentage: 
margin_percentage = real_margin / revenue
This gives you a true picture of contract profitability. Workforce Cost Allocation (Days-Based) Spicom allocates workforce cost using a fixed reference of 20 working days per month. For each person: 
allocation_percentage = days_on_contract / 20
allocated_cost = real_cost * allocation_percentage
Example: 
Developer real cost: €5,320
Days on Contract A: 5
allocated_cost = 5320 * (5/20) = €1,330
Workforce cost distribution is recalculated instantly when you:
  • change days worked
  • add a new contract
  • adjust salaries or freelance rates

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Global Cost Allocation

Your Global Costs (rent, tools, insurance, admin, etc.) are spread evenly across all active contracts. Formula: 
global_cost_per_contract = total_global_costs / number_of_active_contracts
Example: 
Global costs: €1,180
Active contracts: 4
global_cost_per_contract = 1180 / 4 = €295
This ensures every contract carries its fair share of fixed costs.

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Contract Profitability Calculation For each contract: 
contract_margin = contract_amount - workforce_share - global_cost_share
Example: 
Amount: €3,000
Workforce: €2,100
Global: €295

margin = 3000 - 2100 - 295 = €605
Margin %: 
605 / 3000 = 20.1%

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Revenue Projection (12 Months)

Spicom uses confirmed contract dates only — no predictions, no AI guessing. For each month:
  • Check if the contract is active (start ≤ month ≤ end).
  • Add the contract amount to that month’s revenue.
  • Aggregate all active contracts.
This produces a clean, reliable financial forecast. Example: 
Contract A: Jan → Dec
Contract B: Feb → Oct
Contract C: Mar → May
The forecast automatically adjusts:
  • when contracts end
  • when amounts change
  • when new contracts are added
  • inside simulations

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Simulation Calculations

Simulations apply temporary overrides to:
  • contract amount
  • contract active status
  • contract stop
  • contract reduction
  • future projections
Spicom recalculates in real time:

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Full Example (Combined)

Let’s take a contract: Amount: €3,000 Workforce allocation: €1,900 Global cost share: €250 Margin: 
3000 - 1900 - 250 = €850
margin_percentage = 850 / 3000 = 28.3%
In simulation, if the price increases to €3,400: 
new_margin = 3400 - 1900 - 250 = €1,250
margin_percentage = 1250 / 3400 = 36.7%
Clear, transparent, audible.

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Best Practices

  • Update contract amounts when you renegotiate
  • Keep workforce day allocations honest
  • Review global costs monthly
  • Use simulations to test renewals or stops
  • Always compare real vs simulated margins