Profit Margin Calculator.
See what each job really makes you — in seconds. Free for contractors and trade businesses.
RESULTS
Healthy net margins for service and trade businesses usually land between 15% and 25%.
Quick Answers
What is a profit margin calculator?
It is a simple tool that shows how much money you keep after you pay your costs. You enter your sales and costs, and it shows your profit in dollars and as a percent.
What is the difference between gross and net profit?
Gross profit is your revenue minus job costs. Net profit takes gross profit and also subtracts overhead. Net profit is what the business truly keeps.
How do you calculate profit margin?
Gross Margin = (Revenue − Job Costs) ÷ Revenue × 100.
Net Margin = (Revenue − Job Costs − Overhead) ÷ Revenue × 100.
What counts as job costs?
Anything you spend to complete a specific job: materials, field labor and payroll taxes, subcontractors, equipment rental, permits, and dump fees.
What counts as overhead?
Costs you pay no matter which job you are on: rent, office staff, insurance, vehicles, phones, software, marketing, and accounting fees. To set a share per job, divide yearly overhead by yearly revenue and apply that percent to each job.
Who should use this calculator?
Contractors, HVAC, plumbing, electrical, roofing, landscaping, and other trade owners who want to price jobs right and stop leaving money on the table.
Want to Know Your Real Numbers?
TruePoint Accounting helps trade businesses track job costs, price for profit, and get clean books every month.
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