Project Cost & KPIs

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What is a KPI? Well, everyone knows about it. So much has been written and told. We use metrics to evaluate many processes in our work. Marketing, development processes, project management... There is no team where the word KPI does not sound.

In one of our previous articles, we explained how to track project costs ( article Tracking Project Costs in Jira with Cost Tracker, video-tutorial 💸Tracking Project Cost in Jira [Step-by-Step Guide] ). 

And now, we want to explain how you can calculate various KPIs using the Cost Tracker app based on the information received from the cost reports. Let's get started!

Cost reports and KPIs

Key Performance Indicators (KPIs) are essential metrics that provide insights into the performance and effectiveness of your projects, teams, and overall business operations. In the context of the Cost Tracker for Jira Cloud app, here are some KPIs you can track and calculate using the provided features:

Project Budget Variance (PBV)

PBV measures the difference between the actual project cost and the budgeted cost. It helps you determine if you are over or under budget for a specific project.

PBV = Total Project Cost - Budgeted Cost

You will receive this value in the project cost tracking app's cost report immediately if you have specified the Planned Budget option.

Cost per Project/Task/Item

This KPI calculates the total cost of a specific project, task, or item (such as a bug or meeting).

Cost per Project/Task/Item = Team logs * Team rates + Direct expenses

This value is available in the cost report in the Total tab.

Revenue vs. Cost

This KPI compares the revenue generated from invoices with the total cost of projects to assess profitability.

Revenue vs. Cost = Total Revenue - Total Project Cost

Profit Margin

Measures the percentage of profit earned from the total revenue generated by the projects.

Profit Margin = ((Total Revenue - Total Project Cost) / Total Revenue) * 100%

Based on the above data, the Cost Tracker add-on can be used to calculate this indicator.

For example:

Profit Margin = (($12,696.73 - $3,830.72) / $12,696.73) * 100% = 69,8%

By regularly monitoring these KPIs using Cost Tracker for Jira Cloud app, you can gain valuable insights into your projects and organization's financial health, efficiency, and profitability. It also helps you make informed decisions, optimize resource allocation, and identify areas for improvement.

👉Try it today - here is a 30-day trial for you. 

💸 Happy project and company cost analyses!

P.S. We invite you to read other articles and use cases from our team: 

• Tracking Project Costs in Jira with Cost Tracker
• The Cost of an Issue in Jira with Cost Tracker
• How to get your team meeting cost in Jira
• How to calculate version cost in Jira
• How to calculate the cost for efforts on JSM issues
• How much does one bug cost
• Cost tracking for marketing teams in Jira
• How much does one epic in Jira cost 
• Using Cost Tracker for Jira Cloud to Identify Project Cost Overruns
• Cost Tracking for Small Business. [How and Why]