Job Profit Calculator
Revenue is not profit. Enter the price you quoted, the materials, the labor hours, and your overhead allocation, and this calculator shows gross profit, gross margin, net profit after overhead, and what the job earned per labor hour.
Job Details
Price the customer pays, before tax.
Your cost, not the marked-up price.
Wage plus burden.
Permits, disposal, equipment rental, fuel.
Total direct cost
$683.00
Gross profit
$1,167.00
Gross margin
63.1%
Overhead applied
$407.00
Net profit
$760.00
41.1% net margin
Net profit per labor hour
$126.67
Reading The Result
Gross profit is what remains after everything the job physically consumed: parts, technician time, subs, and direct costs. Gross margin expresses that as a share of the price, which is the number to compare across jobs of different sizes.
Net profit subtracts your share of running the business. If net profit is negative while gross margin looks fine, the job did not carry its weight — the price was set without accounting for the office, the building, and the trucks that made the job possible.
Use It Before The Job, Not Just After
The most valuable time to run these numbers is while the estimate is still a draft. Enter the price you are about to quote and the hours you actually expect, and you will know before you send it whether the job clears your margin target — or whether it needs a different scope, a different price, or a polite decline.
Frequently Asked Questions
- What is a healthy gross margin on a service job?
- Most residential service shops target 50 to 60 percent gross margin on service and repair work and 35 to 45 percent on equipment replacement, where material is a much larger share of the ticket. Anything below 30 percent on service work rarely leaves net profit once overhead is applied.
- Should overhead come out of the job?
- Yes, if you want to know whether the job actually contributed. Allocating overhead as a percentage of revenue is the simplest approach and good enough for job-level decisions. Allocating it per billable hour is more accurate for shops with wide variation in job length.
- Why does profit per labor hour matter more than margin?
- Two jobs can both show 55 percent margin while one earns three times as much per hour on site. Since technician hours are your scarcest resource, profit per labor hour tells you which work to chase and which to price differently.
- Do callbacks belong in this calculation?
- They should. Add the return trip's labor hours and any parts to the job that caused them. A job that looked profitable on the first visit and lost money on the second is the one worth understanding.
Stop Rebuilding These Numbers By Hand
JobOpsPro keeps your rates, price book, estimates, and job costing in one system — $25 per user per month, every module included.