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How to actually measure managed services margin

Managed services margin is the most-misunderstood number in MSP financial reporting. This guide breaks down what to include, what to exclude, and how to use it to drive pricing decisions.

Written by Orbit Editorial Team

MSP & B2B service-operations writers

Reviewed for technical accuracy

Orbit Platform Engineering

Last reviewed

Quick Answer

Managed services margin is the most-misunderstood number in MSP financial reporting. This guide breaks down what to include, what to exclude, and how to use it to drive pricing decisions.

Who it's for

  • MSP owners managing margin

Pain points we solve

  • Margin calculated annually
  • Loss-leader clients invisible

How Orbit fits

Real margin, real often, real action.

Capabilities

What Orbit delivers

Cost inclusions

Loaded tech cost, overhead allocation.

Revenue inclusions

Recurring fees, overages, pass-through.

Common use cases

When teams reach for this

  • MSP margin analysis
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