The Margin Forecast report helps you preview projected margin for upcoming work while showing how pipeline opportunities will impact your overall forecast alongside already sold projects.

You can choose which pipeline projects to include, either individually or in bulk using the “percent probability” filter. For example, entering 80% will automatically select all opportunities at 80% likelihood or higher, based on the stages in your CRM.

By regularly including high-probability pipeline work, leadership teams gain confidence that they have enough work lined up to meet quarterly margin targets while maintaining visibility into future demand.

Parallax calculates margin as a comparison between projected revenue and projected costs:

• Projected Revenue — expected income from the selected projects during the forecast period, based on planned hours, billing rates, and any actual revenue already captured.

• Projected Costs — expected delivery costs, driven by planned hours and cost rates for assigned resources.

• Margin is then computed as the difference between projected revenue and projected costs, expressed as a percentage of revenue:

Margin % = (Projected Revenue – Projected Costs) ÷ Projected Revenue × 100.
(This is the same margin formula Parallax uses in other margin reporting and analysis tools like the Margin Overview report.)

In the Margin Forecast report, Parallax combines three components in its calculation:

1. Actuals — revenue and costs that have already occurred up to the reporting period.

2. Plans — revenue and costs expected from work already scheduled in active projects.

3. Pipeline Forecast — projected revenue and costs from selected pipeline opportunities that are likely to close, based on CRM probability and your selection criteria.

That combined set of data — actual revenue + planned work + selected pipeline — is used to compute the total projected revenue and costs for the forecast period. The margin calculation uses those totals.

Filters & Targets

The above graph will give you based on your filter selections the overview of actual revenue, projected revenue, sales pipeline, project margin % and Margin targets(if set).  This allows for clear forecasting looking ahead or to review your progress from past to current. 

Use the Set Targets feature to benchmark your organization’s margin performance and use this report to diagnose issues and accelerate opportunities. 

Pipeline / Deals

With this report you are able to select which pipeline projects you would like to include in your forecast. For a quick bulk selection, try using the "percent probability" field next to your pipeline projects. These percentages are pulled from the stages within your CRM. You may also individually select pipeline projects via the “Display Forecast” column in the pipeline projects table.

You choose which pipeline opportunities to include — either by selecting individually or by using a probability threshold (e.g., 80% or higher). The forecast only includes the revenue and projected costs associated with those pipeline deals you’ve selected.

Start Date Alerts

The Yellow Icon will also show you which deals need to have the start date updated if showing in the past. Having current probable start dates is necessary to help plan when not only resources are going to be needed but how it might affect your bottom line and when.

.

Active Projects

Your active projects detail will show in the bottom portion of the report for all active projects included in the filter options selected.

The time range you pick (e.g., a specific quarter) affects the margin calculation. Parallax only includes revenue and cost data within the selected forecast period when computing the projected margin. Longer periods include more of the future planned work and pipeline contributions

Parallax calculates forecast margin by summing:

1. Revenue (actual + planned + selected pipeline forecast)

2. Costs (actual + planned + costs from selected pipeline forecast)

…then applying the standard margin formula (profit divided by revenue). This gives you a forward-looking view of profitability for the period you’re analyzing.

Insights Overview: 

Example: 

Project A — Active Client Work

Parallax sees:

• Planned Hours: 100

• Bill Rate: $200/hr

• Cost Rate: $120/hr

Projected Revenue

100 hrs × $200/hr = $20,000

Projected Cost

100 hrs × $120/hr = $12,000

Margin (Project A)

Revenue − Cost = $20,000 − $12,000 = $8,000

Margin %

$8,000 ÷ $20,000 = 40% margin
 

Adding in a pipeline deal: 

Opportunity B — Not Sold Yet

• Planned Hours: 50

• Bill Rate: $180/hr

• Cost Rate: $110/hr

• Probability: 85%

Since it’s above your 80% threshold, Parallax includes it in the forecast.

Forecasted Revenue

50 hrs × $180/hr = $9,000

Forecasted Cost

50 hrs × $110/hr = $5,500

Margin (Opportunity B)

$9,000 − $5,500 = $3,500

Parallax adds both together: