How to use this tool
- Enter job revenue excluding tax collected for a taxing authority.
- Add labor, materials, other direct costs and a consistent share of overhead.
- Compare profit, profit margin and markup. Revisit the estimate using actual costs when the job ends.
A worked example
On a $5,000 job with $1,500 labor, $1,000 materials, $300 other costs and $700 overhead, total cost is $3,500. Modeled profit is $1,500, margin 30% and markup about 42.86%.
What the result includes
Results are before income taxes and any unentered expenses. Profit is not cash available: unpaid invoices, deposits, equipment purchases and debt payments affect cash flow.
Common questions
What if revenue is zero?
The tool can show a loss equal to your costs, but margin is undefined because it would require division by zero.
Should I include my own labor?
Include a reasonable owner-labor cost if you want to measure profit after compensating the work. Do not count it twice in overhead.
Prepared by the Tech Turtle team. Formulas and assumptions are explained above so you can check the result against your own job records.
