Job Profit Calculator
Enter your job revenue and costs to see your gross profit, margin, and effective hourly rate.
Enter your job revenue and costs to see your profit breakdown.
Track this automatically on every job with FieldLedgr Pro
Start for FreeHow to Calculate Profit on a Service Job
Understanding profit on every job is the single most important financial habit for a trades business owner. Too many contractors price by gut feel, match competitors, or simply mark up materials without accounting for the full picture. The result: jobs that look profitable on the surface but quietly drain the business.
Gross margin is the percentage of revenue left after direct job costs — materials, labor, subcontractors, and any other expenses tied to that specific job. If you charge a customer $5,000 and the job costs you $3,500 to deliver, your gross profit is $1,500 and your gross margin is 30%. That 30% must still cover your overhead before becoming net profit.
Overhead includes everything you pay whether or not you have a job that day: truck payments, insurance, tool replacement, software subscriptions, marketing, rent, and administrative time. Divide your total monthly overhead by the number of jobs you complete (or billable hours you work) to understand the overhead burden each job must carry.
Labor burden is frequently underestimated. The cost of an employee is not just their hourly wage. Payroll taxes, workers comp, health insurance, paid time off, and training add 25-40% on top of the base wage. A technician earning $30/hour may truly cost you $38-$42/hour. If you price jobs using the base wage, you are losing money on every hour worked.
Undercharging is the most common profitability problem in the trades. It often stems from not tracking these numbers job by job. When you calculate profit on each job, patterns emerge: certain job types are more profitable, certain customers negotiate you down to unprofitable levels, and certain expenses creep up unnoticed.
Use this calculator on every job to build a habit of knowing your numbers. Over time, you will develop a clear picture of what jobs to pursue, what to charge, and where your money actually goes. That knowledge is the difference between a business that grows and one that stays stuck.
Frequently Asked Questions
- What is a good profit margin for a contractor?
- Most successful trades businesses maintain a gross profit margin between 20% and 50%. The exact target depends on your trade, overhead structure, and local market. Specialty trades like electrical and plumbing often see higher margins (35-50%), while general contracting and handyman services typically land in the 20-35% range. Remember that gross margin must cover your overhead (truck, insurance, tools, office) before you see net profit.
- How do I calculate labor cost?
- Labor cost on a job equals the total hours worked multiplied by the fully burdened labor rate. Your burdened rate includes more than just wages — add payroll taxes (roughly 7.65% for the employer share of FICA), workers compensation insurance, health benefits, paid time off, and any vehicle or tool allowances. For most trades, the true cost of a $25/hour employee is closer to $32-$38/hour once burden is factored in.
- Should I include overhead in job pricing?
- Yes. Overhead — rent, insurance, vehicle costs, tools, software, marketing, and office expenses — must be covered by your jobs. Many contractors calculate their monthly overhead, divide it by their expected billable hours, and add that per-hour overhead cost to every job quote. If you skip this step, you may show a gross profit on paper but still lose money when monthly fixed costs come due.