Solo to Agency

Model revenue, margin, and management load when growing from solo to a 2 to 3 person agency.

Current solo revenue $220,000

People to add 2

Annual cost per added person $95,000

Revenue contribution per person $140,000

% of your time on management 35%

Your billable hours drop % 40%

Net agency profit

Above your current solo income

Total agency revenue

Your take-home

Solo vs agency P&L

💡 Transition insight

Freelance-to-Agency Transition Calculator

The Freelance-to-Agency Transition Calculator models the financial reality of growing from a solo operator to a small agency. You enter your current solo revenue, the number of people you would add, the annual cost per person, the revenue each person would contribute, the share of your time that moves to management, and the drop in your own billable hours. The calculator returns the agency's total revenue, your take-home, and the net change versus your current solo income. Use it before any hiring decision. The transition often looks great on top-line revenue and worse on take-home, because management overhead and the drop in your billable hours frequently consume the gross margin gain from added people.