Did this job make money?
Enter what you billed and what the job took. See gross profit, net profit after overhead, both margins, the break-even price and the price for your target margin.
Use a loaded labor rate (wage plus payroll taxes, workers' comp and benefits, per billable hour), not the wage. Overhead per labor hour = a year of overhead ÷ the team's billable hours; overhead as % of price = a year of overhead ÷ a year of revenue.
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Gross profit = price − direct job costs. Net profit = gross profit − the overhead this job must carry. Break-even covers job costs and overhead with nothing left; the target price divides by (1 − margin) so the margin is a true share of the price, not a markup.
Job profit = price − labor hours × loaded rate − materials − subcontractors − permits and other direct costs. That's gross profit; subtract the job's share of overhead for net profit. An $850 repair with 2.5 hours at $53 and $95 of parts has $622.50 gross profit (73%). At $40 of overhead per hour, net profit is $522.50.
How to use the job profit calculator
Enter the price
What you billed for the job, before sales tax.
Add the job costs
Labor hours at your loaded rate, materials at cost, subcontractors, permits and rentals.
Allocate overhead
Per labor hour or as a percentage of price, plus your target net margin.
What the job profit calculator does
Gross and net
Gross profit and margin, then net profit and margin after overhead.
Two overhead methods
Dollars per labor hour or a percentage of the price, whichever your books use.
Break-even price
The price where the job covers its costs and overhead with nothing left.
Target price
The price for your target net margin, worked out as a true margin.
Profit per labor hour
Gross profit per hour, to compare with your overhead per hour.
- Gross profit
- price − (labor + materials + subcontractors + other direct costs)
- Net profit
- gross profit − overhead (hours × $/hour, or price × %)
- Break-even price
- direct costs + overhead ($/hour), or direct costs ÷ (1 − overhead %)
- Target price
- (direct costs + overhead) ÷ (1 − margin), or direct ÷ (1 − overhead % − margin)
- Cost and privacy
- Free, no sign-up; your numbers stay in your browser
Job Profit Calculator FAQ
How do I calculate profit on a job?
Subtract the job's direct costs from the price: labor hours at your loaded rate, parts at what you paid, subcontractors, permits, disposal and rentals. That's gross profit. Subtract the job's share of overhead to get net profit.
What's the difference between gross and net profit on a job?
Gross profit covers only the job's own costs. Net profit also takes out the overhead the job has to carry: office, insurance, software, marketing and the rest. A job can show a healthy gross margin and still lose money after overhead.
How do I allocate overhead to a job?
Either per labor hour (a year of overhead ÷ the team's billable hours) or as a percentage of revenue (a year of overhead ÷ a year of sales). Per hour suits service work; percentage suits jobs with lots of materials or subs.
What is a break-even price?
The price at which net profit is zero: the job pays for its direct costs and its overhead and nothing more. Anything you charge below it loses money.
Why use a loaded labor rate?
Because the wage isn't what an hour costs you. Payroll taxes, workers' comp, benefits and the hours you can't bill push it higher. Our labor rate calculator works out the cost per billable hour.
Where the numbers come from
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