Calculateur de Profit pour EntrepreneurFormule

## 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.

Exemple Résolu

A contractor completes a job for $25,000 with $8,000 labor, $6,000 materials, and $3,000 overhead.

  1. Total costs = $8,000 + $6,000 + $3,000 = $17,000
  2. Net profit = $25,000 - $17,000 = $8,000
  3. Profit margin = ($8,000 / $25,000) x 100 = 32%