Enter what you charged for a job and what it cost you directly to see how much the job really made.
Total direct cost$440.00
Gross profit$410.00
Gross margin48.2%
How it is calculated
- Total direct cost = labor + parts and materials + other direct costs
- Gross profit = job price − total direct cost
- Gross margin = gross profit ÷ job price × 100
Worked example
With the starting values shown in the calculator:
- Job price: $850.00
- Labor cost: $220.00
- Parts and materials cost: $180.00
- Other direct costs: $40.00
- Total direct cost: $440.00
- Gross profit: $410.00
- Gross margin: 48.2%
Using the result
Direct costs are the costs that exist only because of this job: technician labor including drive time, parts, permits, subcontractors and disposal fees. Office wages, rent, insurance and marketing are overhead. Gross profit has to cover overhead before there is any net profit.
This calculator gives an estimate for planning. See the calculator disclaimer.
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Template packSmall Contractor Pricing Pack
Three Excel workbooks that take you from what a technician costs to what to charge, then show whether each job made money.
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