Job Profit Calculator
Enter your contract price and job costs to instantly see your gross profit, profit margin, and markup — so you know if a job's worth taking before you start.
How This Calculator Works
Enter the contract price, then break out your costs: materials, labor, equipment, and overhead percentage. The calculator runs the numbers instantly.
You'll see your gross profit in dollars, profit margin as a percentage, markup percentage, and break-even revenue — color-coded so you can instantly tell if the job makes or loses money.
Know before you start whether a job is worth taking. Stop guessing on margins and start pricing with real numbers so every job you bid is one you can profit from.
Enter Job Details
Total amount the customer is paying for the job
Lumber, shingles, concrete, supplies, etc.
Total crew wages for this job (including burden)
Rentals, dump fees, subcontractors, permits
Office rent, insurance, trucks, admin. Typically 8–15% of direct costs.
Your results will appear here
Enter your job revenue and costs to see your profit margin and markup.
Price Every Job for Profit
Too many contractors bid jobs based on gut feeling. This calculator helps you make data-driven decisions about which jobs are worth your time.
Know Before You Bid
Run the numbers on a job before you submit your bid. Make sure every job you take on is worth your time.
Margin vs. Markup
Understand the difference between profit margin and markup so you don't accidentally underprice your work.
Catch Losing Jobs Early
If the numbers don't work, you'll know before you break ground — not after the invoice goes out.
Margin vs. Markup: The #1 Pricing Mistake
Confusing margin and markup is one of the most expensive mistakes a contractor can make. Here's the difference:
Profit Margin
Profit ÷ Revenue
$25,000 job − $20,000 costs = $5,000 profit
$5,000 ÷ $25,000 = 20% margin
Margin tells you what percentage of the customer's payment is actual profit.
Markup
Profit ÷ Costs
$25,000 job − $20,000 costs = $5,000 profit
$5,000 ÷ $20,000 = 25% markup
Markup tells you how much you added on top of your costs to get the selling price.
The costly mistake
If you want a 25% profit margin but apply a 25% markup to your costs, you'll only end up with a 20% margin. On a $100,000 job, that's a $5,000 difference. Multiply that across all your jobs and it adds up fast.
Quick Reference: Margin to Markup
| Desired Margin | Required Markup |
|---|---|
| 10% | 11.1% |
| 15% | 17.6% |
| 20% | 25.0% |
| 25% | 33.3% |
| 30% | 42.9% |
| 35% | 53.8% |
| 40% | 66.7% |
| 50% | 100.0% |
Frequently Asked Questions
What is a good profit margin for a contractor?
Most successful contractors target a net profit margin of 8-15%, with gross profit margins of 25-35% before overhead. The right margin depends on your trade, overhead costs, and local market. The key is knowing your number and pricing every job to hit it consistently.
What's the difference between profit margin and markup?
Profit margin is your profit divided by revenue (what percentage of the customer's payment is profit). Markup is your profit divided by costs (how much you added on top of costs). A 25% markup only gives you a 20% margin. Confusing the two can cost you thousands per job.
How do I calculate gross profit on a construction job?
Subtract all direct job costs (materials, labor, equipment, and subcontractors) from the contract price. For example, a $50,000 job with $35,000 in direct costs gives you $15,000 in gross profit, or a 30% gross margin. Overhead comes out of gross profit to determine net profit.
Why am I busy but not making money?
The most common cause is underpricing jobs because of inaccurate cost estimates or confusing markup with margin. If your overhead is $8,000/month and you're only making $1,500 gross profit per job, you need at least 6 jobs per month just to break even. Run your numbers through this calculator before every bid.
Should I include overhead in my job profit calculation?
Yes. Overhead costs like insurance, vehicle payments, office rent, and phone bills are real costs that must be covered by your jobs. This calculator lets you enter an overhead percentage so you see the true profit after all costs are accounted for.
How to Pay Your Crew 20% More and Double Your Profit
The math most contractors never run — and the mistakes that cost them $93K+ a year. This free PDF breaks down the math in ten minutes. Plus, you'll understand the payroll traps that can wipe you out.
Ready to Stop Wasting Time on Payroll?
Track piece work, run payroll in minutes, and know exactly what every job costs. Free to start — no credit card required.