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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:
And the margin percentage:
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:
Example:
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:
Example:
This ensures every contract carries its fair share of fixed costs.

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Contract Profitability Calculation For each contract:
Example:
Margin %:

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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:
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:
In simulation, if the price increases to €3,400:
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