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Understanding service margin
Service margin is the most-misunderstood number in service-business reporting. This explainer covers what it really measures and how to use it.
Written by Orbit Editorial Team
MSP & B2B service-operations writers
Reviewed for technical accuracy
Last reviewed
Quick Answer
Service margin is the most-misunderstood number in service-business reporting. This explainer covers what it really measures and how to use it.
Who it's for
- MSP owners
- Service business founders
Pain points we solve
- Service margin not measured at all
- Different team members using different definitions
How Orbit fits
Revenue minus loaded delivery cost — properly attributed.
Capabilities
What Orbit delivers
What to include
Loaded tech cost, overhead allocation, pass-through.
What to exclude
Avoidable double-counting.
Common use cases
When teams reach for this
- Margin literacy
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