How it works
Cost = person-hours × hourly labour cost + materials + fuel + equipment + other expenses. Gross profit = revenue − cost. Margin = profit ÷ revenue × 100. Break-even price equals entered costs. Profit per hour uses total person-hours, not elapsed time. Enter your own labour cost even if you work alone.
A 600 job with 6 person-hours at 30 and 120 in other direct costs has 300 total costs, 300 gross profit, 50% margin and 50 profit per person-hour. Its markup on cost is 100%, not 50%.
Related contractor resources
Frequently asked questions
Is gross profit my take-home pay?
No. These are estimated job-level profits. Insurance, office costs, depreciation, financing and income taxes are excluded unless you allocate them to expenses. Sales tax collected is not revenue.
How is markup different from margin?
Margin divides profit by revenue; markup divides profit by cost. A 200 sale costing 150 has 25% margin and 33.33% markup. Zero revenue has no defined margin.
Should I enter my own labour?
Yes. Enter total person-hours and the loaded hourly cost used by your business. Treating owner labour as free overstates the job profit.