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Profit Margin Calculator

See your gross profit, net profit and true profit margin on any job.

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Net Profit Margin
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    Know your real profit margin on every job

    Revenue tells you what came in. Profit margin tells you what you actually kept. This calculator separates gross profit (revenue minus direct job costs) from net profit (after overhead and other costs too), so you can see both numbers at once.

    How to use it

    • Enter the total revenue for the job or period you're checking.
    • Enter materials and labour costs directly tied to the job.
    • Add overhead and any other costs to see your true net profit margin.

    The formulas

    Gross Profit = Revenue − Materials − Labour Net Profit = Revenue − (Materials + Labour + Overhead + Other) Profit Margin % = Net Profit ÷ Revenue Cost % = Total Costs ÷ Revenue

    Worked example

    Revenue $10,000, materials $3,000, labour $2,500, overhead $800, other costs $200. Gross profit is $4,500. Net profit is $3,500, a net margin of 35%.

    Frequently Asked Questions

    What's the difference between gross profit and net profit?

    Gross profit only subtracts the direct costs of doing the job (materials and labour). Net profit also subtracts overhead and other costs, so it's a more complete picture of what you actually keep.

    What's a good profit margin for a trade business?

    It varies a lot by trade, region and job type — many contractors target somewhere between 10% and 20% net margin, but there's no single right answer. Compare your own numbers over time rather than chasing an industry average.

    How is this different to the markup calculator?

    The markup calculator works from a single cost and price. This calculator works from a full revenue and cost breakdown for a job, quarter or year.