Contractor

Job Profit Calculator

Calculate job profit, margin, and markup after labor, materials, allocated overhead, and other direct costs.

This is a planning estimate, not accounting, tax, legal, or contract advice. Reconcile job costs with actual records and your accounting method.

How to use this tool

How to use the Job Profit Calculator

Enter invoiced or expected job revenue, then include every cost attributable to delivering the work. Separate overhead so omissions are easier to spot.

Enter job revenue for the same scope and period.
Add labor, materials, allocated overhead, and other job costs.
Calculate profit, margin, and markup, then compare estimated and actual results.

Method

Formula or calculation method

Total cost = labor + materials + overhead + other costs. Profit = revenue − total cost. Margin = profit ÷ revenue × 100. Markup = profit ÷ total cost × 100.

Interpretation

What the result means

Profit is the amount remaining after entered costs. Margin measures profit as a share of revenue; markup measures profit relative to cost. They are not interchangeable.

Example

Worked example

$18,000 revenue less $6,200 labor, $4,800 materials, $900 overhead, and $350 other costs leaves $5,750 profit, a 31.9% margin and 46.9% markup.

Avoid

Common mistakes

Common omissions include owner labor, payroll burden, subcontractors, equipment, travel, permits, disposal, callbacks, warranty work, payment fees, and allocated overhead.

Best use

When to use it

Use it before quoting, during job-cost reviews, after completion, and when comparing project types, crews, customers, or estimating accuracy.

Common questions

Job Profit Calculator FAQ

How do I calculate profit on a job?

Add labor, materials, overhead, and other attributable costs, then subtract total cost from job revenue.

What is the difference between margin and markup?

Margin divides profit by revenue. Markup divides profit by cost. The same job therefore has different margin and markup percentages.

Should overhead be included in job profit?

Yes, when you want the job to contribute fairly to rent, insurance, software, vehicles, supervision, and other operating costs that direct costs alone do not capture.

Use this in a real workflow

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