Fieldpaid › Free tools › Job Profit Calculator
To calculate job profit margin: subtract all job costs — materials, labor, and overhead — from your invoice total. Divide that gross profit by the invoice total and multiply by 100. A result above 35% is healthy for most trades; below 20% and the job is likely unprofitable once business overhead is included.
Job Profit Margin Calculator
Enter your invoice total, materials, labor hours, and any extra costs. See gross profit, margin %, and markup % live — no signup needed.
Job details
Profit margin
A healthy trade job runs 35–50% margin
Gross profit
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Revenue minus all costs
Markup
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Profit over total cost
Total cost
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Labor cost
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Materials
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Margin vs markup — why it matters
Margin is gross profit as a percentage of what you charged. Markup is gross profit as a percentage of what you spent. They sound similar but produce very different numbers — and confusing the two is one of the most common reasons contractors underprice.
Example
Invoice: $1,000 · Total cost: $600 · Gross profit: $400
Margin = $400 ÷ $1,000 = 40%
Markup = $400 ÷ $600 = 66.7%
If you price jobs to a 40% markup but your accountant measures margin, you'll appear to be running a 28.5% margin — lower than you planned. Target margin, not markup, when quoting.
Why trade contractors underestimate their true costs
Most contractors track materials and labor but miss the costs that sit between jobs: vehicle depreciation, insurance, tool replacement, slow-pay clients who tie up cash for 30+ days. A job that shows 40% margin on paper can deliver far less once those are allocated.
The fix is simple: track actuals on every job, not just the ones that felt expensive. Over time you'll see exactly which job types, clients, and areas actually pay — and which ones just feel profitable.
Built into Fieldpaid
See this automatically on every job.
Fieldpaid shows you real margin vs quoted margin the moment an invoice clears. Log your actual hours and materials in 60 seconds after each job — no spreadsheet, no manual maths.
Get started free$20/month · all features · works with your existing QuickBooks
Common questions
What is a good profit margin for a contractor job?
Most experienced trade contractors target 35–50% gross margin. Jobs below 20% are usually unprofitable once overhead is included. Margin varies by trade — electrical and HVAC typically run higher than general construction because of the skill premium.
What's the difference between margin and markup?
Margin is gross profit as a percentage of revenue (what you charged). Markup is gross profit as a percentage of cost (what you spent). A job with $400 profit on $1,000 revenue has a 40% margin but a 66.7% markup. Contractors often confuse the two — pricing to a 40% markup only delivers 28.5% margin.
How do I calculate job profit?
Gross profit = Invoice total − (materials + labor cost + other costs). Profit margin % = (gross profit ÷ invoice total) × 100. Labor cost = hours worked × your cost per hour. Always use actual figures from the completed job, not your original estimate.