Job Profit Calculator
Calculate the true profit on any job after all costs โ materials, labour, subcontractors and overhead allocation. See your gross margin, net margin and whether the job was actually worth doing.
๐จ Job Profit Calculator
๐ How It Works
Job profit is calculated by deducting all direct costs from revenue to get gross profit, then deducting overhead allocation to get net profit. Gross margin shows raw job profitability. Net margin shows true profitability after your business costs are accounted for.
๐ Worked Example
Electrical job: Revenue $12,000. Materials $3,200, labour $4,800, subs $0, other $400. Gross profit = $3,600 (30% margin). Overhead allocation $1,200. Net profit = $2,400 (20% net margin).
โ Frequently Asked Questions
Take your total annual overheads and divide by your total annual revenue to get an overhead rate. Apply that rate to each job's revenue. Example: $60,000 overheads รท $400,000 revenue = 15% overhead rate. A $12,000 job gets $1,800 overhead allocation.
Yes โ always include a market-rate wage for your own time on the job. This prevents you confusing revenue with profit. If you don't cost your own labour, every job looks more profitable than it is.
Target 15โ25% net margin (after overhead allocation) for most trade jobs. Jobs below 10% net contribute little to your business after overhead recovery. Jobs consistently below break-even net indicate a pricing problem.
Gross profit is revenue minus direct job costs only. Net profit also deducts your overhead allocation โ the portion of your fixed business costs (insurance, vehicle, admin) assigned to that job. Net profit is the true bottom line.