Free Contractor Profit Calculator
Calculate net profit for contractors. Enter job revenue, labor costs, material costs, and overhead to see your true profit and margin.
USD
USD
USD
USD
Net Profit
$8,000.00
Total Costs$17,000.00
Profit Margin32.00%
Net Profit vs Job Revenue
How to Calculate Contractor Profit
Formula
Net Profit = Revenue - (Labor + Materials + Overhead) Profit Margin = (Net Profit / Revenue) x 100
Most successful contractors aim for a net profit margin between 8% and 20%, depending on the trade and market conditions.
Example Calculation
A contractor completes a job for $25,000 with $8,000 labor, $6,000 materials, and $3,000 overhead.
- 01Total costs = $8,000 + $6,000 + $3,000 = $17,000
- 02Net profit = $25,000 - $17,000 = $8,000
- 03Profit margin = ($8,000 / $25,000) x 100 = 32%
Frequently Asked Questions
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How to Calculate Profit Margin
Learn how to calculate gross, operating, and net profit margins step by step. Understand what healthy margins look like across industries and how to improve yours.