What gross profit and margin mean
Gross profit is what is left after you subtract job costs from the quote. Gross margin is that profit as a percentage of the quote. A small job at 50% margin can beat a big job at 10%. Margin tells you how hard each dollar of turnover is working, so you know which work to take more of and which to quote higher or walk away from.
Count your own labour as a cost
If you do not put a value on your own hours, the job looks more profitable than it is. Enter the hours you spent and a target hourly rate to see whether the job actually paid you. Subbie labour belongs in the cost list. Your own time belongs in the hours field, so the real hourly rate is honest.
How this calculator works
Quote minus your named costs gives gross profit. Divide by the quote for margin. Add daily overhead and days on site for net profit after running costs. Add your hours for an effective hourly rate. Everything updates as you type. Numbers stay in your browser unless you choose to email yourself a branded PDF report. For a deeper walkthrough, see the complete job costing guide and tracking job costs from receipts.
Margin ranges described here are typical for a trades job, not universal accounting benchmarks.
Learn more
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