Job Profit Calculator

1. Enter what the customer pays for the job.
2. Enter each cost: loaded labor, materials, subcontractors, equipment, other direct costs and the overhead share for this job.
3. Optionally set a target net margin to see the price that would hit it.

Quick answers

What is the difference between job profit margin and markup?

Margin is profit ÷ price; markup is profit ÷ cost. A job priced at $12,500 with $10,000 of cost has a 20% margin and a 25% markup.

Edge cases and limits

• Leaving overhead at 0 shows gross profit only, which overstates what the job earned.
• Use the Job Bid Calculator before the job and this calculator after it with actual costs.

Gross profit shows what the job itself earned before running the business; net profit subtracts the job's share of overhead. Margin is measured against the price and markup against the cost, which is why a 25% markup is only a 20% margin.

• Direct cost = labor + materials + subcontractors + equipment + other
• Total cost = direct cost + allocated overhead (= break-even price)
• Gross profit = price − direct cost; net profit = price − total cost
• Net margin = net profit ÷ price × 100; markup = net profit ÷ total cost × 100
• Price for target margin = total cost ÷ (1 − target margin)

Net profit and margin show what the job actually contributed after covering its share of running the business. If the price is below the target-margin price, the gap is how much this type of job is underpriced.

Common mistakes and assumptions

• Using raw wages instead of loaded labor cost.
• Leaving overhead out, which makes every job look profitable.
• Confusing markup with margin when setting prices.
• Checking profit only on estimates, never on actual costs after the job.

An $18,000 remodel with $6,200 loaded labor, $4,800 materials, $1,500 subs, $700 equipment, $400 other and $1,800 overhead, aiming for 15%.

1. 1Direct cost = $13,600; total cost = $15,400 (the break-even price).
2. 2Gross profit = $18,000 − $13,600 = $4,400 (24.4%).
3. 3Net profit = $18,000 − $15,400 = $2,600, a 14.4% margin and 16.9% markup.
4. 4Price for 15% margin = $15,400 ÷ 0.85 ≈ $18,118 — about $118 more than charged.

How do I calculate profit on a job?

Add up every direct cost — labor, materials, subcontractors, equipment and other job expenses — plus the job's share of overhead, and subtract the total from the job price.

What's the difference between gross and net job profit?

Gross profit is price minus direct job costs. Net profit also subtracts overhead such as office, vehicles and admin. A job can have healthy gross profit and still lose money net.

How should I allocate overhead to a job?

Common methods are a percentage of direct cost, a rate per labor hour, or a share of annual overhead by job duration. Use the same method consistently so jobs compare fairly.

Why is my markup higher than my margin?

Markup divides profit by cost; margin divides profit by price. Price is larger than cost, so margin is always the smaller percentage for a profitable job.

Should I use this before or after a job?

Both. Before, use your estimate to confirm the price clears your target margin — or use the Job Bid Calculator to build the price. After, enter actual costs to see what the job really earned.